8-K
Voya Financial, Inc. (VOYA)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
May 2, 2023
VOYA FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 001-35897 | No. | 52-1222820 | |
|---|---|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification Number) | ||
| 230 Park Avenue | ||||
| New York | New York | 10169 | ||
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (212) 309-8200
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Name of each exchange on which registered |
|---|---|
| Common Stock, .01 Par Value | New York Stock Exchange |
| Depositary Shares, each representing a 1/40th | New York Stock Exchange |
| interest in a share of 5.35% Fixed-Rate Non-Cumulative Preferred Stock, Series B, 0.01 par value |
All values are in US Dollars.
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition |
|---|
On May 2, 2023 Voya Financial, Inc. (“Voya Financial”) reported its financial results for the three months ended March 31, 2023. A copy of the press release containing this information is furnished as Exhibit 99.1 hereto and is incorporated by reference in this item 2.02.
As previously announced, Voya Financial will host a conference call on Wednesday, May 3, 2023 at 10:00 am ET to discuss its first-quarter 2023 results. The call can be accessed via Voya Financial’s investor relations website at http://investors.voya.com. In addition, more detailed financial information can be found in Voya Financial’s Quarterly Investor Supplement for the quarter ended March 31, 2023, available on Voya Financial’s investor relations website at http://investors.voya.com. Further, Voya Financial has prepared a recast Quarterly Investor Supplement for the year ended December 31, 2022 with prior period results recast for the impact of LDTI changes as well as certain other changes to Voya Financial's non-GAAP financial measures. This recast Quarterly Investor Supplement for the year ended December 31, 2022 is also available on Voya Financial's Investor Relations website at http://investors.voya.com. The Quarterly Investor Supplement for the quarter ended March 31, 2023 and the recast Quarterly Investor Supplement for the year ended December 31, 2022 are furnished herewith as Exhibits 99.2 and 99.3, respectively, and are incorporated by reference in this item 2.02.
As provided in General Instruction B.2 of Form 8-K, the information and exhibits provided pursuant to this Item 2.02 shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended, nor shall they be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set for by specific reference in such filing.
| Item 7.01 | Regulation FD Disclosure |
|---|
On May 2, 2023, Voya Financial made available a slide presentation that will accompany the conference call described above in Item 2.02. These slides are available on Voya Financial’s investor relations website at http://investors.voya.com.
As provided in General Instruction B.2 of Form 8-K, the information provided pursuant to this Item 7.01 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
| Item 9.01 | Financial Statements and Exhibits |
|---|
(d) Exhibits
99.1 Press release of Voya Financial, Inc., datedMay 2, 2023 (furnished and not filed)
99.2 Quarterly Investor Supplement for the quarter endedMarch 31, 2023 (furnished and not filed)
99.3 Recast Quarterly Investor Supplement for the year ended December 31, 2022 (furnished and not filed)
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Voya Financial, Inc.
(Registrant)
By: /s/ My Chi To
Name: My Chi To
Title: Executive Vice President, Chief Legal Officer and Corporate Secretary
Dated: May 2, 2023
Document
Exhibit 99.1
Voya Financial announces first-quarter 2023 results
NEW YORK, May 2, 2023 — Voya Financial, Inc. (NYSE: VOYA), announced today first-quarter 2023 financial results:
•Net income available to common shareholders of $0.63 per diluted share.
•After-tax adjusted operating earnings1 per diluted share (EPS) of $1.44.
•Results reflect continued benefit of diverse revenue streams and strong margins across Voya’s businesses.
•Excess capital of approximately $0.5 billion as of March 31, 2023, reflecting capital generation of over 90% of adjusted operating earnings for the trailing twelve months ended March 31.
"In the first quarter of 2023, we generated strong adjusted operating EPS that reflects our diverse revenue streams and strong margins across our businesses," said Heather Lavallee, chief executive officer, Voya Financial, Inc. "The focus on our strategy and accelerating profitable growth supported our excess capital generation strength during the trailing twelve months ended March 31, 2023. As a reflection of the confidence in our capital strength and further capital generation of our business, we plan to increase our dividend yield to approximately 2% in the second half of 2023, subject to board approval and continued constructive macro conditions. We also intend to resume share repurchases in the second quarter. We continue to expect to meet our 12% to 17% adjusted operating EPS annual compound growth target over the three-year period ending in 2024 that we previously shared at Investor Day in late 2021.
“During the quarter, we took actions that strengthen the culture that differentiates us in the marketplace and support our bold purpose: Together, we fight for everyone's opportunity for a better financial future. We are focused on addressing the growing health, wealth and investment needs of our clients and customers, while also supporting our colleagues and communities. For example, we funded programs with Disability:IN and National Down Syndrome Society to help advance the employment of people with disabilities, and we celebrated Financial Literacy Month in April with employees across our businesses by supporting programs like the National Personal Finance Challenge," added Lavallee.
Consolidated Results
First-quarter 2023 net income available to common shareholders was $69 million, or $0.63 per diluted share, compared with $54 million, or $0.46 per diluted share, in first-quarter 2022. The increase was primarily due to lower net investment losses, partially offset by higher acquisition and integration costs and lower after-tax adjusted operating earnings.
1 This press release includes certain non-GAAP financial measures, including adjusted operating earnings. More information on notable items in the company’s financial results, non-GAAP measures, and reconciliations to the most comparable U.S. GAAP measures can be found in the reconciliation tables at the end of this press release and in the “Non-GAAP Financial Measures” section of the company’s Quarterly Investor Supplement, which is available at investors.voya.com. Prior period results have been recast for the company’s implementation of Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI) and for updates to the non-GAAP definition of adjusted operating earnings before income taxes in Corporate. For further information and for a reconciliation to previously reported financial information, please refer to the company’s Dec. 31, 2022 Quarterly Investor Supplement Recast for LDTI and changes to non-GAAP definitions, which is also available at investors.voya.com.
First-quarter 2023 after-tax adjusted operating earnings were $158 million, or $1.44 per diluted share, compared with $182 million, or $1.55 per diluted share in first-quarter 2022. The decline reflects lower alternative investment income as well as higher expenses due primarily to increased seasonality.
Business Segment Results
The following business segment discussions compare the trailing twelve months ended March 31, 2023, with the prior-year period, unless otherwise noted.
Wealth Solutions
Wealth Solutions first-quarter 2023 pre-tax adjusted operating earnings were $132 million, down from $228 million in the prior-year period primarily due to lower alternative investment income.
Full-service recurring deposits grew 9.6% to $13.6 billion — the absence of heightened deposits driven by a post-COVID catch-up in contributions in the prior-year period was partially offset by continued growth in participants in the first quarter of 2023. Total client assets as of March 31, 2023, were $498 billion, down 4% as growth in the business, including positive net flows during the trailing twelve months ended March 31, was more than offset by lower equity market levels and higher surrenders.
Excluding notables, net revenues grew 2.3% as spread-based revenues benefited from higher interest rates and more than offset the impact of lower average equity markets on fee-based margins. Adjusted operating margin, excluding notables, was 38.6%, up from 36.9%.
Health Solutions
Health Solutions first-quarter 2023 pre-tax adjusted operating earnings were $94 million, up from $21 million in the prior-year period due to strong sales growth, favorable underwriting results and the positive impact of the Benefitfocus acquisition, which closed in January 2023.
Health Solutions annualized in-force premiums and fees grew 22.0% to $3.3 billion. The strong increase reflects growth across all product lines and the positive impact of the Benefitfocus acquisition.
Excluding notables, net revenues grew 25.9% due to the Benefitfocus acquisition, premium growth across all product lines and disciplined underwriting. Adjusted operating margin, excluding notables, was 33.5%, up from 31.6%.
Investment Management
Investment Management pre-tax adjusted operating earnings, excluding Allianz noncontrolling interest, were $33 million, down from $39 million in the prior-year period due to higher expenses, which reflect timing and elevated seasonal impacts.
Investment Management had net outflows of $0.9 billion during the trailing twelve months ended March 31, 2023 as net inflows in Institutional (due largely to net inflows from privates and
alternatives) were more than offset by lower Retail net flows, despite positive net flows in Allianz Global Investors investment strategies over the past several quarters.
Excluding notables, net revenues grew 16.8% as additional revenues from the Allianz Global Investors transaction more than offset the impact of macro headwinds on both equity and fixed income fees, particularly in Retail. Adjusted operating margin, excluding notables, was 25.4%, up from 25.2% mainly due to the addition of Allianz Global Investors investment strategies.
Capital
During the trailing twelve months ended March 31, 2023, Voya deployed approximately $1.1 billion of excess capital, including approximately $0.6 billion for acquisitions, $0.3 billion for share repurchases, $0.2 billion for debt redemption and $0.1 billion for common stock dividends. As of March 31, 2023, Voya had approximately $0.5 billion of excess capital, reflecting capital generation of over 90% of adjusted operating earnings for the trailing twelve months ended March 31, 2023.
As of March 31, 2023, the company had approximately $275 million remaining under its share-repurchase authorization. Voya announced today that its board of directors has extended the expiration of its most recent share repurchase authorization from June 30, 2023 to Sept. 30, 2023. Under its share-repurchase program, the company may, from time to time, purchase shares of its common stock through various means, including open market transactions, repurchase programs pursuant to rule 10b5-1, privately negotiated transactions, forward, derivative, accelerated repurchase, automatic repurchase transactions, or tender offers. The authorization for the share repurchase program does not obligate the company to purchase any shares and may be terminated, increased or decreased by the board of directors at any time.
Additional Financial Information and Earnings Call
More detailed financial information can be found in the company’s quarterly investor supplement, which is available on Voya’s investor relations website, investors.voya.com. In addition, Voya will host a conference call on Wednesday, May 3, 2023, at 10 a.m. ET, to discuss the company’s first-quarter 2023 results. The call and slide presentation can be accessed via the company’s investor relations website at investors.voya.com. A replay of the call will be available on the company’s investor relations website at investors.voya.com starting at 1 p.m. ET on May 3, 2023.
Media Contact: Investor Contact:
Christopher Breslin Michael Katz
212-309-8941 212-309-8999
Christopher.Breslin@voya.com IR@voya.com
About Voya Financial
Voya Financial, Inc. (NYSE: VOYA), is a leading health, wealth and investment company with 7,200 employees who are focused on achieving Voya’s aspirational vision: Clearing your path to financial confidence and a more fulfilling life. Through products, solutions and technologies, Voya helps its 14.7 million individual, workplace and institutional clients become well planned, well invested and well protected. Benefitfocus, a Voya company, extends the reach of Voya’s workplace benefits and savings offerings by providing benefits administration capabilities to 16.5 million individual subscription employees across employer and health plan clients. Certified as a “Great Place to Work” by the Great Place to Work® Institute, Voya is purpose-driven and equally committed to conducting business in a way that is socially,
environmentally, economically and ethically responsible. Voya has earned recognition as: one of the World’s Most Ethical Companies® by the Ethisphere Institute; a member of the Bloomberg Gender-Equality Index; and a “Best Place to Work for Disability Inclusion” on the Disability Equality Index. For more information, visit voya.com. Follow Voya Financial on Facebook, LinkedIn and Twitter @Voya.
Forward-Looking and Other Cautionary Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The company does not assume any obligation to revise or update these statements to reflect new information, subsequent events or changes in strategy. Forward-looking statements include statements relating to future developments in our business or expectations for our future financial performance and any statement not involving a historical fact. Forward-looking statements use words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” and other words and terms of similar meaning in connection with a discussion of future operating or financial performance. Actual results, performance or events may differ materially from those projected in any forward-looking statement due to, among other things, (i) general economic conditions, particularly economic conditions in our core markets, (ii) performance of financial markets, (iii) the frequency and severity of insured loss events, (iv) the effects of natural or man-made disasters, including pandemic events, (v) mortality and morbidity levels, (vi) persistency and lapse levels, (vii) interest rates, (viii) currency exchange rates, (ix) general competitive factors, (x) changes in laws and regulations, such as those relating to Federal taxation, state insurance regulations and NAIC regulations and guidelines, (xi) changes in the policies of governments and/or regulatory authorities, (xii) our ability to successfully manage the separation of the Individual Life business that we sold to Resolution Life US on January 4, 2021, including the transition services on the expected timeline and economic terms, and (xiii) our ability to realize the expected benefits from acquisitions, including the transactions with Allianz Global Investors U.S. LLC (“AllianzGI”) and Benefitfocus Inc. Factors that may cause actual results to differ from those in any forward-looking statement also include those described under “Risk Factors” and “Management’s Discussion and Analysis of Results of Operations and Financial Condition (“MD&A”) – Trends and Uncertainties” in our Annual Report on Form 10-K for the year ended Dec. 31, 2022, as filed with the Securities and Exchange Commission (“SEC”) on Feb. 24, 2023, and in our Quarterly Report on Form 10-Q for the three months ended March 31, 2023, to be filed with the SEC on or before May 10, 2023.
VOYA-IR VOYA-CF
| Reconciliation of Net Income (Loss) to Adjusted Operating Earnings and Earnings Per Share (Diluted) | ||||||||
|---|---|---|---|---|---|---|---|---|
| Three Months Ended | ||||||||
| ($ in millions, except per share) | 3/31/2023 | 3/31/2022 | ||||||
| After-tax (1) | Per share | After-tax (1) | Per share | |||||
| Net Income (loss) available to Voya Financial, Inc.'s common shareholders | $ | 69 | $ | 0.63 | $ | 54 | $ | 0.46 |
| Less: | ||||||||
| Net investment gains (losses) | (7) | (0.06) | (88) | (0.75) | ||||
| Income (loss) related to businesses exited or to be exited through reinsurance or divestment | (26) | (0.23) | (28) | (0.24) | ||||
| Other adjustments (2) | (56) | (0.51) | (11) | (0.09) | ||||
| Adjusted operating earnings | $ | 158 | $ | 1.44 | $ | 182 | $ | 1.55 |
| Less: | ||||||||
| Alternative investment income and prepayment fees above (below) long-term expectations net of variable and incentive compensation | (27) | (0.25) | 47 | 0.40 | ||||
| Other (3) | — | — | (31) | (0.27) | ||||
| Adjusted operating earnings excluding notable items | $ | 185 | $ | 1.69 | $ | 166 | $ | 1.42 |
(1) The adjusted operating effective tax rate is based on the actual income tax expense for the current period related to Income (loss), adjusted for estimated taxes on non-operating items and non-operating tax impacts, such as those related to restructuring, changes in a tax valuation allowance and changes to tax law. For non-operating items, we apply a 21% tax rate.
(2) “Other adjustments” primarily consists of closing and integration costs associated with the Benefitfocus acquisition and ongoing integration costs associated with the Allianz Global Investors transaction for the three months ended March 31, 2023.
(3) Includes Group Life COVID-19 impacts for the three months ended March 31, 2022.
| Adjusted Operating Earnings and Notable Items | ||||||
|---|---|---|---|---|---|---|
| Three Months Ended March 31, 2023 | ||||||
| (in millions) | Amounts including <br>Notable items | Investment Income Net of Variable and Incentive Compensation Above (Below) Expectations (1) | Amounts excluding <br>Notable items | |||
| Adjusted operating earnings | ||||||
| Wealth Solutions | $ | 132 | $ | (33) | $ | 166 |
| Health Solutions | 94 | (2) | 97 | |||
| Investment Management | 42 | 2 | 41 | |||
| Corporate | (69) | — | (69) | |||
| Adjusted operating earnings before income taxes, including Allianz noncontrolling interest | 200 | (34) | 234 | |||
| Less: Earnings (loss) attributable to Allianz noncontrolling interest | 8 | — | 8 | |||
| Adjusted operating earnings before income taxes | 192 | (34) | 226 | |||
| Income taxes (2) | 34 | (7) | 42 | |||
| Adjusted operating earnings after income taxes | $ | 158 | $ | (27) | $ | 185 |
| Adjusted operating earnings per share | 1.44 | (0.25) | 1.69 |
(1) The amount by which Investment income from alternative investments and prepayments exceeds or is less than our long-term expectations, net of variable and incentive compensation.
(2) The adjusted operating effective tax rate is based on the actual income tax expense for the current period related to Income (loss), adjusted for estimated taxes on non-operating items and non-operating tax impacts, such as those related to restructuring, changes in a tax valuation allowance and changes to tax law. For non-operating items, we apply a 21% tax rate.
| Net Revenue, Adjusted Operating Margin, and Notable Items | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Twelve Months Ended March 31, 2023 | ||||||||||||
| (in millions) | Amounts including Notable items | Investment Income Net of Variable and Incentive Compensation Above (Below) Expectations (1) | Other (2) | Amounts excluding Notable items | ||||||||
| a | b | c | d = a - b - c | |||||||||
| Net revenue | ||||||||||||
| Wealth Solutions | $ | 1,817 | $ | (161) | $ | — | $ | 1,978 | ||||
| Health Solutions | 1,039 | (15) | 57 | 997 | ||||||||
| Investment Management | 807 | (30) | — | 836 | ||||||||
| Total Net revenue | $ | 3,663 | $ | (206) | $ | 57 | $ | 3,811 | ||||
| Adjusted operating margin | ||||||||||||
| Wealth Solutions | 33.1 | % | (5.4) | % | — | 38.6 | % | |||||
| Health Solutions | 36.2 | % | (0.9) | % | 3.6 | % | 33.5 | % | ||||
| Investment Management | 23.4 | % | (2.0) | % | — | 25.4 | % | |||||
| Adjusted operating margin, excluding Corporate | 31.9 | % | (3.5) | % | 1.0 | % | 34.4 | % |
(1) The amount by which Investment income from alternative investments and prepayments exceeds or is less than our long-term expectations.
(2) Includes changes in certain other reserves not expected to recur at the same level.
| Net Revenue, Adjusted Operating Margin, and Notable Items | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Twelve Months Ended March 31, 2022 | |||||||||||||||
| (in millions) | Amounts including Notable items | Investment Income Net of Variable and Incentive Compensation Above (Below) Expectations (1) | COVID-19 Impacts | Other (2) | Amounts excluding Notable items | ||||||||||
| a | b | c | d | e = a - b - c - d | |||||||||||
| Net revenue | |||||||||||||||
| Wealth Solutions | $ | 2,322 | $ | 377 | $ | — | $ | 10 | $ | 1,934 | |||||
| Health Solutions | 728 | 39 | (117) | 13 | 792 | ||||||||||
| Investment Management | 772 | 56 | — | — | 716 | ||||||||||
| Total Net revenue | $ | 3,822 | $ | 472 | $ | (117) | $ | 23 | $ | 3,442 | |||||
| Adjusted operating margin | |||||||||||||||
| Wealth Solutions | 46.4 | % | 10.4 | % | — | (0.9) | % | 36.9 | % | ||||||
| Health Solutions | 25.5 | % | 4.3 | % | (11.4) | % | 1.1 | % | 31.6 | % | |||||
| Investment Management | 29.4 | % | 4.1 | % | — | — | 25.2 | % | |||||||
| Adjusted operating margin, excluding Corporate | 39.0 | % | 8.3 | % | (2.3) | % | (0.2) | % | 33.2 | % |
(1) The amount by which Investment income from alternative investments and prepayments exceeds or is less than our long-term expectations.
(2) Includes revenues and expenses in Wealth Solutions related to the sale of the independent financial planning channel prior to its divestment in June 2021 and changes in certain legal and other reserves not expected to recur at the same level.
6
Document
| Exhibit 99.2 |
|---|
Quarterly Investor Supplement
March 31, 2023
This report should be read in conjunction with Voya Financial, Inc.'s Quarterly Report on Form 10-Q for the Three Months Ended March 31, 2023. Voya Financial's Annual Reports on Form 10-K, and Quarterly Reports on Form 10-Q, can be accessed upon filing at the Securities and Exchange Commission’s website at www.sec.gov, and at our website at investors.voya.com. All information is unaudited.
| Corporate Offices: | Media Contact: | Investor Contact: |
|---|---|---|
| Voya Financial | Christopher Breslin | Michael Katz |
| 230 Park Avenue | 212-309-8941 | 212-309-8999 |
| New York, New York 10169 | Christopher.Breslin@voya.com | IR@voya.com |
| NYSE Ticker: | Web Site: | |
| VOYA | investors.voya.com |
Table of Contents
| Page | Page | ||
|---|---|---|---|
| Consolidated | Investment Information | ||
| Explanatory Note on Non-GAAP Financial Information | 3 - 5 | Portfolio Results GAAP Book Value, Gross Investment Income, and | |
| Key Metrics | 6 | Earned Rate by Asset Class | 33 |
| Consolidated Statements of Operations | 7 | Portfolio Results Statutory Carrying Values by Asset Class and NAIC | |
| Consolidated Adjusted Operating Earnings Before Income Taxes | 8 | Ratings | 34 |
| Adjusted Operating Earnings Before Income Taxes by Segment (QTD) | 9 | Alternative Investment Income | 35 |
| Consolidated Balance Sheets | 10 | Alternative Income and Prepayments Above (Below) Long-Term | |
| DAC/VOBA Segment Trends | 11 | Expectations | 36 |
| Consolidated Capital Structure | 12 | Reconciliations | |
| Consolidated Assets Under Management, Assets Under Administration | Reconciliation of Adjusted Operating Earnings Before Income Taxes and | ||
| and Advisement | 13 | Earnings Per Common Share (Diluted) (QTD) | 38 |
| Wealth Solutions | Reconciliation of Adjusted Operating Revenues | 39 | |
| Sources of Adjusted Operating Earnings Before Income Taxes | Reconciliation of Net Revenues by Segment | 40 - 41 | |
| and Key Metrics | 15 | Reconciliation of Adjusted Operating Earnings Before Income Taxes | |
| Client Assets Rollforward by Product Group | 16 - 17 | Excluding Notable Items by Segment | 42 |
| Health Solutions | Reconciliation of Book Value Per Common Share, Excluding AOCI, | ||
| Sources of Adjusted Operating Earnings Before Income Taxes | 19 | Leverage Ratio, and Adjusted Diluted Shares | 43 |
| Key Metrics | 20 | ||
| Investment Management | |||
| Sources of Adjusted Operating Earnings Before Income Taxes | 22 | ||
| Analysis of AUM and AUA | 23 | ||
| Account Value Rollforward by Source | 24 | ||
| Account Value by Asset Type | 25 | ||
| Corporate | |||
| Adjusted Operating Earnings Before Income Taxes | 27 | ||
| Net Revenue, Adjusted Operating Margin, Administrative | |||
| Expenses, and Adjusted Operating Return on Capital | |||
| Net Revenue and Adjusted Operating Margin | 29 | ||
| Administrative Expenses | 30 | ||
| Adjusted Operating Return on Allocated Capital | 31 |
| Voya Financial | Page 3 of 43 |
|---|
Explanatory Note on Non-GAAP Financial Information
Prior period results have been recast for the company’s implementation of Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI) and for updates to the non-GAAP definition of adjusted operating earnings before income taxes in Corporate. For further information and for a reconciliation to previously reported financial information, please refer to company’s Dec. 31, 2022 Quarterly Investor Supplement Recast for LDTI and changes to non-GAAP definitions, which is available at investors.voya.com.
On January 24, 2023, we completed the acquisition of Benefitfocus, Inc. ("Benefitfocus"). We are reporting the financial results of Benefitfocus in our Health Solutions segment for periods after our acquisition of that business on January 24, 2023. For further information, refer to our Quarterly Report on Form 10-Q for the first quarter 2023.
Adjusted Operating Earnings Before Income Taxes
We believe that Adjusted operating earnings before income taxes provides a meaningful measure of our business and segment performance and enhances the understanding of our financial results by focusing on the operating performance and trends of the underlying business segments and excluding items that tend to be highly variable from period to period based on capital market conditions or other factors. We use the same accounting policies and procedures to measure segment Adjusted operating earnings before income taxes as we do for the directly comparable U.S. GAAP measure, which is Income (loss) before income taxes.
Adjusted operating earnings before income taxes does not replace Income (loss) before income taxes as a measure of our consolidated results of operations. Therefore, we believe that it is useful to evaluate both Income (loss) before income taxes and Adjusted operating earnings before income taxes when reviewing our financial and operating performance. Each segment’s Adjusted operating earnings before income taxes is calculated by adjusting Income (loss) before income taxes for the following items:
▪Net investment gains (losses), which are significantly influenced by economic and market conditions, including interest rates and credit spreads, and are not indicative of normal operations. Net investment gains (losses) include gains (losses) on the sale of securities, impairments, changes in the fair value of investments using the FVO unrelated to the implied loan-backed security income recognition for certain mortgage-backed obligations, and changes in the fair value of derivative instruments, excluding gains (losses) associated with swap settlements and accrued interest. It also includes changes in the fair value of derivatives related to managed custody guarantees, net of related reserve increases (decreases), less the estimated cost of these benefits, changes in nonperformance spread, and changes in market risk benefits;
•Income (loss) related to businesses exited or to be exited through reinsurance or divestment, which includes gains and (losses) associated with transactions to exit blocks of business (including net investment gains (losses) on securities sold and expenses directly related to these transactions) and residual run-off activity (including an insignificant number of Individual Life, and non-Wealth Solutions annuities policies that were not part of the divested businesses). Excluding this activity, which also includes amortization of intangible assets related to businesses exited or to be exited, better reveals trends in our core business and more closely aligns Adjusted operating earnings before income taxes with how we manage our segments;
•Income (loss) attributable to noncontrolling interests, which represents the interest of shareholders, other than those of Voya Financial, Inc., in the gains and (losses) of consolidated entities, such as Allianz SE's ("Allianz") stake in the results of VIM Holdings LLC (referred to as redeemable noncontrolling interest and Allianz noncontrolling interest) or the attribution of results from consolidated VIEs or VOEs to which we are not economically entitled;
•Dividend payments made to preferred shareholders are included as reductions to reflect the Adjusted operating earnings before income taxes that are available to common shareholders;
•Other adjustments may include the following items:
•Income (loss) related to early extinguishment of debt, which includes losses incurred as a result of transactions where we repurchase outstanding principal amounts of debt. These losses are excluded from Adjusted operating earnings before income taxes since the outcome of decisions to restructure debt are not indicative of normal operations;
•Impairment of goodwill, value of management contract rights and value of customer relationships acquired, which includes losses as a result of impairment analysis; these represent losses related to infrequent events and do not reflect normal, cash-settled expenses;
•Amortization of value of management contract rights, value of customer relationships acquired, and other acquisition-related intangible assets as well as contingent consideration fair value adjustments incurred in connection with certain acquisitions which are not indicative of current Operating expense fundamentals;
•Expected return on plan assets net of interest costs associated with our qualified defined benefit pension plan and immediate recognition of net actuarial gains (losses) related to all of our pension and other postretirement benefit obligations and gains (losses) from plan amendments and curtailments, which includes actuarial gains and (losses) as a result of differences between actual and expected experience on pension plan assets or projected benefit obligation during a given period. These amounts do not reflect cash-settled expenses, and are not indicative of current Operating expense fundamentals; and
•Other items not indicative of normal operations or performance of our segments or may be related to events such as capital or organizational restructurings undertaken to achieve long-term economic benefits, including certain costs related to debt and equity offerings, acquisition / merger integration expenses, severance and other third-party expenses associated with such activities, and expenses attributable to vacant real estate. These items vary widely in timing, scope and frequency between periods as well as between companies to which we are compared. Accordingly, we adjust for these items as we believe that these items distort the ability to make a meaningful evaluation of the current and future performance of our segments.
| Voya Financial | Page 4 of 43 |
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Explanatory Note on Non-GAAP Financial Information
The most directly comparable U.S. GAAP measure to Adjusted operating earnings before income taxes is Income (loss) before income taxes. For a reconciliation of Adjusted operating earnings before income taxes to Income (loss) before income taxes, refer to the "Reconciliations" section in this document.
Adjusted Operating Revenues
Adjusted operating revenues is a measure of our segment revenues and a non-GAAP financial measure. Each segment's Adjusted operating revenues are calculated by adjusting Total revenues for the following items:
•Net investment gains (losses), which are significantly influenced by economic and market conditions, including interest rates and credit spreads, and are not indicative of normal operations. Net investment gains (losses) include gains (losses) on the sale of securities, impairments, changes in the fair value of investments using the FVO unrelated to the implied loan-backed security income recognition for certain mortgage-backed obligations, and changes in the fair value of derivative instruments, excluding gains (losses) associated with swap settlements and accrued interest. It also includes changes in the fair value of derivatives related to managed custody guarantees, net of related reserve increases (decreases), less the estimated cost of these benefits, and changes in nonperformance spread.
•Revenues related to businesses exited or to be exited through reinsurance or divestment, which include revenues associated with transactions to exit blocks of business (including net investment gains (losses) on securities sold related to these transactions), and residual run-off activity (including an insignificant number of Individual Life and non-Wealth Solutions annuities policies that were not part of the divested businesses). Excluding this activity better reveals trends in our core business and more closely aligns Adjusted operating revenues with how we manage our segments;
•Revenues attributable to noncontrolling interests, which represent the interests of shareholders, other than those of Voya Financial, Inc., in consolidated entities. Revenues attributable to noncontrolling interests represent such shareholders' interests in the revenues of those entities, or the attribution of results from consolidated VIEs or VOEs to which we are not economically entitled; and
•Other adjustments primarily reflect fee income earned by our broker-dealers for sales of non-proprietary products, which are reflected net of commission expense in our segments’ operating revenues, other items where the income is passed on to third parties and the elimination of intercompany investment expenses included in Adjusted operating revenues.
The most directly comparable U.S. GAAP measure to Adjusted operating revenues is Total revenues. For a reconciliation of Adjusted operating revenues to Total revenues, refer to the "Reconciliations" section of this document.
Sources of Earnings
We analyze our segment performance based on the sources of earnings. We believe this supplemental information is useful in order to gain a better understanding of our Adjusted operating earnings before income taxes for the following reasons: (1) we analyze our business using this information and (2) this presentation can be helpful for investors to understand the main drivers of Adjusted operating earnings before income taxes. The sources of earnings are defined as such:
•Investment spread and other investment income consists of net investment income and net gains (losses) associated with swap settlements and accrued interest, less interest credited to policyholder reserves.
•Fee based margin consists primarily of fees earned on assets under management ("AUM"), assets under administration and advisement ("AUA"), and transaction based recordkeeping fees, and fees for subscriptions and services associated with cloud-based benefits software.
•Net underwriting gain (loss) and other revenue contains the following: the difference between fees charged for insurance risks and incurred benefits, including mortality, morbidity, surrender results, and contractual charges.
•Administrative expenses are general expenses, net of amounts capitalized as acquisition expenses and exclude commission expenses.
•Net commissions are commissions paid that are not deferred and thus recorded directly to expense.
•DAC/VOBA and other intangibles amortization.
| Voya Financial | Page 5 of 43 |
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Explanatory Note on Non-GAAP Financial Information
Net Revenue and Adjusted Operating Margin
• Adjusted operating margin is defined as adjusted operating earnings before income taxes divided by net revenue.
• Net revenue is the sum of investment spread and other investment income, fee based margin, and net underwriting gain (loss). Please see the “Reconciliations” section of this document for a
reconciliation of net revenue to adjusted operating revenue for each of our segments.
• We report net revenue and adjusted operating margin for each of our segments, since they provide a meaningful measure for the two primary drivers for adjusted operating earnings – revenue growth and margin expansion.
• We also report net revenue and adjusted operating margin excluding notable items, such as alternative investment income above or below our long-term expectations. Please see the “Reconciliations” section of this document for a reconciliation of net revenue to net revenues excluding notable items and of adjusted operating earnings before income taxes to adjusted operating earnings excluding notable items.
• We report net revenue and adjusted operating margin excluding notable items since it provides the main drivers for adjusted operating earnings before income taxes excluding the effects of items that are not expected to recur at the same level.
Other Information
Financial information, unless otherwise noted, is rounded to millions, therefore may not sum to its corresponding total.
| Voya Financial | Page 6 of 43 |
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Key Metrics
| Three Months Ended or As of | Year-to-Date or As of | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions USD, unless otherwise indicated) | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 3/31/2023 | 3/31/2022 | |||||||
| Net income (loss) available to Voya Financial, Inc.'s common shareholders | 69 | 190 | 166 | 64 | 54 | 69 | 54 | |||||||
| Per common share (basic) | 0.70 | 1.95 | 1.70 | 0.62 | 0.51 | 0.70 | 0.51 | |||||||
| Per common share (diluted) | 0.63 | 1.78 | 1.57 | 0.57 | 0.46 | 0.63 | 0.46 | |||||||
| Adjusted operating earnings: (1) | ||||||||||||||
| Before income taxes | 192 | 206 | 254 | 228 | 221 | 192 | 221 | |||||||
| After income taxes | 158 | 227 | 210 | 188 | 182 | 158 | 182 | |||||||
| Effective tax rate | 17.9 | % | -10.2 | % | 17.5 | % | 17.2 | % | 17.6 | % | 17.9 | % | 17.6 | % |
| Per common share (Adjusted diluted) | 1.44 | 2.13 | 1.97 | 1.70 | 1.55 | 1.44 | 1.55 | |||||||
| Shareholder's equity: | ||||||||||||||
| Total Voya Financial, Inc. Common Shareholders' Equity | 3,342 | 2,737 | 2,304 | 2,988 | 5,066 | 3,342 | 5,066 | |||||||
| Total Voya Financial, Inc. Common Shareholders' Equity - Excluding AOCI (1) | 5,887 | 5,792 | 5,607 | 5,033 | 5,226 | 5,887 | 5,226 | |||||||
| Book value per common share (including AOCI) | 34.03 | 28.16 | 23.70 | 30.52 | 49.57 | 34.03 | 49.57 | |||||||
| Book value per common share (excluding AOCI) (1) | 59.95 | 59.59 | 57.69 | 51.41 | 51.14 | 59.95 | 51.14 | |||||||
| Leverage Ratios: | ||||||||||||||
| Debt-to-Capital | 36.1 | % | 40.0 | % | 43.4 | % | 39.9 | % | 29.8 | % | 36.1 | % | 29.8 | % |
| Financial Leverage - excluding AOCI (1) | 29.5 | % | 29.5 | % | 29.8 | % | 32.8 | % | 33.0 | % | 29.5 | % | 33.0 | % |
| Shares: | ||||||||||||||
| Weighted-average common shares outstanding | ||||||||||||||
| Basic | 98 | 97 | 98 | 102 | 106 | 98 | 106 | |||||||
| Dilutive effect of warrants | 9 | 7 | 6 | 7 | 8 | 9 | 8 | |||||||
| Other dilutive effects (2) | 3 | 2 | 2 | 2 | 3 | 3 | 3 | |||||||
| Diluted | 110 | 107 | 106 | 111 | 117 | 110 | 117 | |||||||
| Adjusted Diluted (1) | 110 | 107 | 106 | 111 | 117 | 110 | 117 | |||||||
| Ending shares outstanding | 98 | 97 | 97 | 98 | 102 | 98 | 102 | |||||||
| Returned to Common Shareholders: | ||||||||||||||
| Repurchase of common shares, excluding commissions | — | — | 50 | 255 | 445 | — | 445 | |||||||
| Dividends to common shareholders | 20 | 19 | 20 | 20 | 21 | 20 | 21 | |||||||
| Total cash returned to common shareholders | 20 | 19 | 70 | 275 | 466 | 20 | 466 | |||||||
| (1) This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer to the “Explanatory Note on Non-GAAP Financial Information” beginning on page 3 of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Reconciliations” section beginning on page 37 of this document. | ||||||||||||||
| (2) Includes stock-based compensation awards such as restricted stock units (RSU), performance stock units (PSU), or stock options. |
| Voya Financial | Page 7 of 43 |
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Consolidated Statements of Operations
| Three Months Ended | Year-to-Date | ||||||
|---|---|---|---|---|---|---|---|
| (in millions USD) | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 3/31/2023 | 3/31/2022 |
| Revenues | |||||||
| Net investment income | 545 | 548 | 522 | 581 | 630 | 545 | 630 |
| Fee income | 464 | 451 | 445 | 413 | 433 | 464 | 433 |
| Premiums | 685 | 612 | 606 | 597 | 608 | 685 | 608 |
| Net gains (losses) | (16) | (47) | (125) | (226) | (288) | (16) | (288) |
| Other revenues | 78 | 31 | 33 | 44 | 40 | 78 | 40 |
| Income (loss) related to consolidated investment entities | 79 | (40) | (136) | 115 | 83 | 79 | 83 |
| Total revenues | 1,835 | 1,555 | 1,345 | 1,524 | 1,506 | 1,835 | 1,506 |
| Benefits and expenses | |||||||
| Interest credited and other benefits to contract owners/policyholders | (751) | (693) | (537) | (654) | (644) | (751) | (644) |
| Operating expenses | (836) | (673) | (632) | (605) | (632) | (836) | (632) |
| Net amortization of DAC/VOBA | (59) | (56) | (60) | (62) | (62) | (59) | (62) |
| Interest expense | (32) | (30) | (31) | (33) | (40) | (32) | (40) |
| Operating expenses related to consolidated investment entities | (16) | (20) | (14) | (18) | (6) | (16) | (6) |
| Total benefits and expenses | (1,694) | (1,472) | (1,274) | (1,372) | (1,384) | (1,694) | (1,384) |
| Income (loss) before income taxes | 141 | 83 | 71 | 152 | 122 | 141 | 122 |
| Income tax expense (benefit) | 12 | (54) | 29 | 9 | 11 | 12 | 11 |
| Net income (loss) | 129 | 137 | 42 | 143 | 111 | 129 | 111 |
| Less: Net income (loss) attributable to noncontrolling interest and redeemable noncontrolling interest | 46 | (57) | (138) | 75 | 43 | 46 | 43 |
| Net income (loss) available to Voya Financial, Inc. | 83 | 194 | 180 | 68 | 68 | 83 | 68 |
| Less: Preferred stock dividends | 14 | 4 | 14 | 4 | 14 | 14 | 14 |
| Net income (loss) available to Voya Financial, Inc.'s common shareholders | 69 | 190 | 166 | 64 | 54 | 69 | 54 |
| Voya Financial | Page 8 of 43 |
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Consolidated Adjusted Operating Earnings Before Income Taxes
| Three Months Ended | Year-to-Date | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions USD) | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 3/31/2023 | 3/31/2022 | |||||||||
| Consolidated Adjusted Operating Earnings Before Income Taxes | ||||||||||||||||
| Adjusted operating revenues | ||||||||||||||||
| Net investment income and net gains (losses) | 482 | 460 | 415 | 488 | 537 | 482 | 537 | |||||||||
| Fee income | 468 | 455 | 451 | 418 | 440 | 468 | 440 | |||||||||
| Premiums | 675 | 601 | 598 | 588 | 591 | 675 | 591 | |||||||||
| Other revenue | 73 | 31 | 30 | 43 | 35 | 73 | 35 | |||||||||
| Adjusted operating revenues (1) | 1,697 | 1,547 | 1,495 | 1,537 | 1,603 | 1,697 | 1,603 | |||||||||
| Adjusted operating benefits and expenses | ||||||||||||||||
| Interest credited and other benefits to contract owners/policyholders | (689) | (648) | (557) | (665) | (696) | (689) | (696) | |||||||||
| Operating expenses | (731) | (614) | (590) | (574) | (605) | (731) | (605) | |||||||||
| Net amortization of DAC/VOBA | (31) | (30) | (32) | (30) | (30) | (31) | (30) | |||||||||
| Interest expense (2) | (47) | (37) | (49) | (40) | (52) | (47) | (52) | |||||||||
| Adjusted operating benefits and expenses | (1,498) | (1,328) | (1,228) | (1,309) | (1,383) | (1,498) | (1,383) | |||||||||
| Adjusted operating earnings before income taxes, including Allianz noncontrolling interest (1) | 200 | 219 | 267 | 228 | 221 | 200 | 221 | |||||||||
| Less: Earnings (loss) attributable to Allianz noncontrolling interest | 8 | 13 | 13 | — | — | 8 | — | |||||||||
| Adjusted operating earnings before income taxes (1) | 192 | 206 | 254 | 228 | 221 | 192 | 221 | Adjusted Operating Revenues and Adjusted Operating Earnings Before Income Taxes by Segment | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | |||||||||
| Adjusted operating revenues | ||||||||||||||||
| Wealth Solutions | 684 | 669 | 645 | 709 | 756 | 684 | 756 | |||||||||
| Health Solutions | 774 | 649 | 645 | 641 | 647 | 774 | 647 | |||||||||
| Investment Management | 229 | 215 | 192 | 171 | 178 | 229 | 178 | |||||||||
| Corporate | 11 | 15 | 13 | 17 | 22 | 11 | 22 | |||||||||
| Adjusted operating revenues (1) | 1,697 | 1,547 | 1,495 | 1,537 | 1,603 | 1,697 | 1,603 | |||||||||
| Adjusted operating earnings before income taxes | ||||||||||||||||
| Wealth Solutions | 132 | 145 | 128 | 197 | 228 | 132 | 228 | |||||||||
| Health Solutions | 94 | 78 | 154 | 50 | 21 | 94 | 21 | |||||||||
| Investment Management | 42 | 57 | 51 | 40 | 39 | 42 | 39 | |||||||||
| Corporate | (69) | (60) | (66) | (60) | (68) | (69) | (68) | |||||||||
| Adjusted operating earnings before income taxes, including Allianz noncontrolling interest (1) | 200 | 219 | 267 | 228 | 221 | 200 | 221 | |||||||||
| Less: Earnings (loss) attributable to Allianz noncontrolling interest | 8 | 13 | 13 | — | — | 8 | — | |||||||||
| Adjusted operating earnings before income taxes (1) | 192 | 206 | 254 | 228 | 221 | 192 | 221 | |||||||||
| (1) This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer to the “Explanatory Note on Non-GAAP Financial Information” beginning on page 3 of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Reconciliations” section beginning on page 37 of this document. | ||||||||||||||||
| (2) Includes dividend payments made to preferred shareholders. |
| Voya Financial | Page 9 of 43 |
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Adjusted Operating Earnings Before Income Taxes by Segment
| Three Months Ended March 31, 2023 | |||||
|---|---|---|---|---|---|
| (in millions USD) | Wealth Solutions | Health Solutions | Investment Management | Corporate | Consolidated |
| Adjusted operating revenues | |||||
| Net investment income and net gains (losses) | 434 | 33 | 10 | 4 | 482 |
| Fee income | 231 | 21 | 216 | — | 468 |
| Premiums | — | 675 | — | — | 675 |
| Other revenue | 20 | 45 | 2 | 6 | 73 |
| Adjusted operating revenues (1) | 684 | 774 | 229 | 11 | 1,697 |
| Adjusted operating benefits and expenses | |||||
| Interest credited and other benefits to contract owners/policyholders | (222) | (467) | — | — | (689) |
| Operating expenses | (308) | (204) | (186) | (33) | (731) |
| Net amortization of DAC/VOBA | (22) | (8) | — | — | (31) |
| Interest expense (2) | — | — | — | (47) | (47) |
| Adjusted operating benefits and expenses | (552) | (680) | (186) | (80) | (1,498) |
| Adjusted operating earnings before income taxes, including Allianz noncontrolling interest (1) | 132 | 94 | 42 | (69) | 200 |
| Less: Earnings (loss) attributable to Allianz noncontrolling interest | — | — | 9 | (1) | 8 |
| Adjusted operating earnings before income taxes (1) | 132 | 94 | 33 | (68) | 192 |
| Three Months Ended March 31, 2022 | |||||
| Wealth Solutions | Health Solutions | Investment Management | Corporate | Consolidated | |
| Adjusted operating revenues | |||||
| Net investment income and net gains (losses) | 487 | 39 | 11 | 1 | 537 |
| Fee income | 255 | 19 | 165 | — | 440 |
| Premiums | — | 591 | — | — | 591 |
| Other revenue | 14 | (2) | 2 | 21 | 35 |
| Adjusted operating revenues (1) | 756 | 647 | 178 | 22 | 1,603 |
| Adjusted operating benefits and expenses | |||||
| Interest credited and other benefits to contract owners/policyholders | (218) | (478) | — | — | (696) |
| Operating expenses | (286) | (141) | (139) | (38) | (605) |
| Net amortization of DAC/VOBA | (24) | (6) | — | — | (30) |
| Interest expense (2) | — | — | — | (52) | (52) |
| Adjusted operating benefits and expenses | (528) | (626) | (139) | (90) | (1,383) |
| Adjusted operating earnings before income taxes, including Allianz noncontrolling interest (1) | 228 | 21 | 39 | (68) | 221 |
| Less: Earnings (loss) attributable to Allianz noncontrolling interest | — | — | — | — | — |
| Adjusted operating earnings before income taxes (1) | 228 | 21 | 39 | (68) | 221 |
| (1) This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer to the “Explanatory Note on Non-GAAP Financial Information” beginning on page 3 of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Reconciliations” section beginning on page 37 of this document. | |||||
| (2) Includes dividend payments made to preferred shareholders. |
| Voya Financial | Page 10 of 43 |
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Consolidated Balance Sheets
| Balances as of | |||||
|---|---|---|---|---|---|
| (in millions USD) | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 |
| Assets | |||||
| Total investments | 38,703 | 39,110 | 39,519 | 40,913 | 42,950 |
| Cash and cash equivalents | 724 | 919 | 840 | 954 | 1,011 |
| Assets held in separate accounts | 84,569 | 80,174 | 75,980 | 80,017 | 93,108 |
| Premium receivable and reinsurance recoverable, net | 12,438 | 12,426 | 12,559 | 12,441 | 12,980 |
| Short term investments under securities loan agreement and accrued investment income | 1,691 | 1,604 | 1,623 | 1,536 | 1,507 |
| Deferred policy acquisition costs, Value of business acquired | 2,333 | 2,363 | 2,389 | 2,422 | 2,450 |
| Current and deferred income taxes | 2,126 | 2,228 | 2,245 | 2,040 | 1,544 |
| Other assets (1) | 4,191 | 3,578 | 3,532 | 2,608 | 2,748 |
| Assets related to consolidated investment entities | 4,433 | 4,204 | 4,195 | 4,165 | 3,933 |
| Total Assets | 151,208 | 146,606 | 142,882 | 147,096 | 162,231 |
| Liabilities | |||||
| Future policy benefits and contract owner account balances | 51,493 | 52,174 | 53,039 | 53,168 | 53,230 |
| Liabilities related to separate accounts | 84,569 | 80,174 | 75,980 | 80,017 | 93,108 |
| Payables under securities loan agreements, including collateral held | 1,328 | 1,302 | 1,378 | 1,220 | 1,124 |
| Short-term debt | 143 | 141 | 141 | 1 | 1 |
| Long-term debt | 2,094 | 2,094 | 2,094 | 2,385 | 2,406 |
| Other liabilities (2) | 3,350 | 3,290 | 3,270 | 2,854 | 3,076 |
| Liabilities related to consolidated investment entities | 2,544 | 2,434 | 2,319 | 2,154 | 2,102 |
| Total Liabilities | 145,521 | 141,609 | 138,221 | 141,799 | 155,047 |
| Mezzanine Equity | |||||
| Allianz noncontrolling interest | 166 | 166 | 155 | — | — |
| Shareholders' Equity | |||||
| Preferred stock | — | — | — | — | — |
| Common stock | 1 | 1 | 1 | 1 | 1 |
| Treasury stock | (77) | (39) | (873) | (821) | (565) |
| Additional paid-in capital | 6,693 | 6,643 | 7,945 | 7,500 | 7,504 |
| Retained earnings (deficit) | (118) | (201) | (854) | (1,035) | (1,102) |
| Total Voya Financial, Inc. Shareholders' Equity - Excluding AOCI | 6,499 | 6,404 | 6,219 | 5,645 | 5,838 |
| Accumulated other comprehensive income | (2,545) | (3,055) | (3,303) | (2,045) | (160) |
| Total Voya Financial, Inc. Shareholders' Equity | 3,954 | 3,349 | 2,916 | 3,600 | 5,678 |
| Noncontrolling interest | 1,567 | 1,482 | 1,590 | 1,697 | 1,506 |
| Total Shareholders' Equity | 5,521 | 4,831 | 4,506 | 5,297 | 7,184 |
| Total Liabilities, Mezzanine Equity and Shareholders' Equity | 151,208 | 146,606 | 142,882 | 147,096 | 162,231 |
| (1) Includes Other assets, Goodwill, and Other intangibles, net. | |||||
| (2) Includes Other liabilities, and Derivatives. |
| Voya Financial | Page 11 of 43 |
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DAC/VOBA Segment Trends
| Three Months Ended | Year-to-Date | ||||||
|---|---|---|---|---|---|---|---|
| (in millions USD) | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 3/31/2023 | 3/31/2022 |
| Wealth Solutions | |||||||
| Balance as of Beginning-of-Period | 1,088 | 1,095 | 1,103 | 1,111 | 1,118 | 1,088 | 1,118 |
| Deferrals of commissions and expenses | 16 | 16 | 15 | 16 | 17 | 16 | 17 |
| Amortization | (22) | (23) | (23) | (24) | (24) | (22) | (24) |
| Balance as of End-of-Period | 1,082 | 1,088 | 1,095 | 1,103 | 1,111 | 1,082 | 1,111 |
| Deferred Sales Inducements as of End-of-Period | 22 | 24 | 23 | 23 | 23 | 22 | 23 |
| Health Solutions | |||||||
| Balance as of Beginning-of-Period | 190 | 182 | 178 | 168 | 164 | 190 | 164 |
| Deferrals of commissions and expenses | 13 | 15 | 14 | 17 | 10 | 13 | 10 |
| Amortization | (8) | (7) | (9) | (7) | (6) | (8) | (6) |
| Balance as of End-of-Period | 194 | 190 | 182 | 178 | 168 | 194 | 168 |
| Total | |||||||
| Balance as of Beginning-of-Period | 1,279 | 1,278 | 1,281 | 1,279 | 1,282 | 1,279 | 1,282 |
| Deferrals of commissions and expenses | 29 | 31 | 29 | 33 | 27 | 29 | 27 |
| Amortization | (31) | (30) | (32) | (30) | (30) | (31) | (30) |
| Balance as of End-of-Period, excluding businesses exited through reinsurance or divestment | 1,276 | 1,279 | 1,278 | 1,281 | 1,279 | 1,276 | 1,279 |
| Balance as of End-of-Period, businesses exited through reinsurance or divestment (1) | 1,057 | 1,084 | 1,111 | 1,141 | 1,171 | 1,057 | 1,171 |
| Balance as of End-of-Period, including businesses exited through reinsurance or divestment | 2,333 | 2,363 | 2,389 | 2,422 | 2,450 | 2,333 | 2,450 |
| (1) Includes DAC and VOBA related to businesses ceded through reinsurance, and an insignificant number of Individual Life and non-Wealth Solutions annuities policies that were not part of the divested businesses. |
| Voya Financial | Page 12 of 43 |
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Consolidated Capital Structure
| Balances as of | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (in millions USD) | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | |||||
| Financial Debt | ||||||||||
| Senior bonds | 1,498 | 1,496 | 1,495 | 1,495 | 1,495 | |||||
| Subordinated bonds | 737 | 737 | 737 | 888 | 909 | |||||
| Other debt | 2 | 2 | 3 | 3 | 3 | |||||
| Total Financial Debt | 2,237 | 2,235 | 2,235 | 2,386 | 2,407 | |||||
| Other financial obligations (1) | 335 | 265 | 269 | 282 | 301 | |||||
| Total Financial Obligations | 2,572 | 2,500 | 2,504 | 2,668 | 2,708 | |||||
| Mezzanine Equity | ||||||||||
| Allianz noncontrolling interest | 166 | 166 | 155 | — | — | |||||
| Equity | ||||||||||
| Preferred equity (2) | 612 | 612 | 612 | 612 | 612 | |||||
| Common equity (Excluding AOCI) | 5,887 | 5,792 | 5,607 | 5,033 | 5,226 | |||||
| Total Equity (Excluding AOCI) (3) | 6,499 | 6,404 | 6,219 | 5,645 | 5,838 | |||||
| Accumulated other comprehensive income (AOCI) | (2,545) | (3,055) | (3,303) | (2,045) | (160) | |||||
| Total Voya Financial, Inc. Shareholders' Equity | 3,954 | 3,349 | 2,916 | 3,600 | 5,678 | |||||
| Noncontrolling interest | 1,567 | 1,482 | 1,590 | 1,697 | 1,506 | |||||
| Total Shareholders' Equity | 5,521 | 4,831 | 4,506 | 5,297 | 7,184 | |||||
| Capital | ||||||||||
| Capitalization (4) | 6,191 | 5,584 | 5,151 | 5,986 | 8,085 | |||||
| Adjusted Capitalization excluding AOCI (5) | 10,804 | 10,552 | 10,468 | 10,010 | 10,052 | |||||
| Leverage Ratios | ||||||||||
| Debt-to-Capital (6) | 36.1 | % | 40.0 | % | 43.4 | % | 39.9 | % | 29.8 | % |
| Financial Leverage excluding AOCI (7) | 29.5 | % | 29.5 | % | 29.8 | % | 32.8 | % | 33.0 | % |
| (1) Includes operating leases, capital leases, and unfunded pension plan after-tax. | ||||||||||
| (2) Includes Preferred stock par value and additional paid-in-capital. | ||||||||||
| (3) This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer to the “Explanatory Note on Non-GAAP Financial Information” beginning on page 3 of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Reconciliations” section beginning on page 37 of this document. | ||||||||||
| (4) Includes Total Financial, Debt and Total Voya Financial Inc. Shareholders' Equity. | ||||||||||
| (5) Includes Total Financial Obligations, Mezzanine Equity, and Total Shareholders' Equity excluding AOCI. | ||||||||||
| (6) Total Financial Debt divided by Capitalization. | ||||||||||
| (7) Total Financial Obligations and Preferred equity divided by Adjusted Capitalization excluding AOCI. |
| Voya Financial | Page 13 of 43 |
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Consolidated Assets Under Management, Assets Under Administration and Advisement
| As of March 31, 2023 | ||||||
|---|---|---|---|---|---|---|
| (in millions USD) | General Account | Separate Account | Institutional/Mutual Funds | Total AUM - Assets Under Management | AUA - Assets Under Administration & Advisement (2) | Total AUM and AUA |
| Wealth Solutions (1) | 33,242 | 80,922 | 78,067 | 192,231 | 305,663 | 497,895 |
| Health Solutions | 1,829 | 15 | — | 1,844 | — | 1,844 |
| Investment Management | 36,934 | 25,011 | 265,643 | 327,589 | 56,310 | 383,899 |
| Eliminations/Other (3) | (35,071) | (21,379) | (11,459) | (67,909) | (44,544) | (112,453) |
| Total AUM and AUA | 36,934 | 84,569 | 332,251 | 453,755 | 317,429 | 771,185 |
| (1) Includes wrapped funds as well as unwrapped Voya-managed funds. | ||||||
| (2) Wealth Solutions Assets under Administration and Advisement includes Recordkeeping, Stable Value investment-only wrap, Brokerage and Investment Advisory assets. Investment Management Assets under Administration and Advisement includes Mutual Fund, Institutional, Stable Value and General Account assets where only advisement, administrative, distribution coverage, relationship management and client servicing, or ancillary services are performed. | ||||||
| (3) Includes eliminations for AUM and AUA in our Wealth and Health segments that are managed by our Investment Management Segment and also reported in their AUM and AUA. |
Wealth Solutions
| Voya Financial | Page 15 of 43 |
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Wealth Solutions Sources of Adjusted Operating Earnings Before Income Taxes and Key Metrics
| Three Months Ended or As of | Year-to-Date or As of | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions USD) | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 3/31/2023 | 3/31/2022 | |||||
| Sources of operating earnings before income taxes: | ||||||||||||
| Gross investment income | 428 | 432 | 427 | 411 | 397 | 428 | 397 | |||||
| Investment expenses | (19) | (20) | (20) | (20) | (19) | (19) | (19) | |||||
| Credited interest | (218) | (220) | (218) | (219) | (215) | (218) | (215) | |||||
| Net margin | 190 | 192 | 189 | 172 | 163 | 190 | 163 | |||||
| Other investment income (1) | 56 | 57 | 57 | 61 | 54 | 56 | 54 | |||||
| Investment spread and other investment income, excluding alts/prepays above/below expectations | 245 | 249 | 246 | 233 | 217 | 245 | 217 | |||||
| Alternative investment income and prepayment fees above (below) long-term expectations | (33) | (50) | (70) | (7) | 52 | (33) | 52 | |||||
| Investment spread and other investment income | 212 | 199 | 176 | 226 | 269 | 212 | 269 | |||||
| Full service fee based revenue | 136 | 134 | 137 | 145 | 156 | 136 | 156 | |||||
| Recordkeeping and other fee based revenue | 111 | 108 | 107 | 112 | 112 | 111 | 112 | |||||
| Total fee based margin | 247 | 241 | 244 | 257 | 268 | 247 | 268 | |||||
| Net underwriting gain (loss) and other revenue | 4 | 5 | 3 | 4 | 1 | 4 | 1 | |||||
| Net revenue (2) | 463 | 445 | 423 | 486 | 538 | 463 | 538 | |||||
| Administrative expenses | (251) | (223) | (214) | (207) | (223) | (251) | (223) | |||||
| Net commissions | (56) | (55) | (57) | (58) | (63) | (56) | (63) | |||||
| DAC/VOBA and other intangibles amortization | (23) | (23) | (24) | (24) | (24) | (23) | (24) | |||||
| Adjusted operating earnings before income taxes | 132 | 145 | 128 | 197 | 228 | 132 | 228 | |||||
| Adjusted Operating Margin TTM | 33.1 | % | 36.9 | % | 39.6 | % | 44.5 | % | 46.4 | % | ||
| Adjusted Operating Margin Excluding Notables TTM | 38.6 | % | 39.3 | % | 37.9 | % | 37.7 | % | 36.9 | % | ||
| Full Service Revenue (3) | ||||||||||||
| Full Service Investment Spread and other investment income | 206 | 194 | 170 | 218 | 258 | 206 | 258 | |||||
| Full Service Fee Based Revenue | 136 | 134 | 137 | 145 | 156 | 136 | 156 | |||||
| Total Full Service Revenue | 343 | 327 | 307 | 363 | 414 | 342 | 414 | |||||
| Client Assets | ||||||||||||
| Fee Based (4) | 408,688 | 387,961 | 364,099 | 377,667 | 422,629 | 408,688 | 422,629 | |||||
| Spread Based | 33,242 | 33,881 | 34,358 | 34,220 | 33,759 | 33,242 | 33,759 | |||||
| Investment-only Stable Value | 37,781 | 38,148 | 38,944 | 39,622 | 40,391 | 37,781 | 40,391 | |||||
| Retail Client Assets (5) | 25,757 | 24,908 | 23,547 | 24,892 | 28,941 | 25,757 | 28,941 | |||||
| Eliminations (5) | (7,574) | (7,511) | (7,355) | (7,381) | (7,743) | (7,574) | (7,743) | |||||
| Total Client Assets (4) | 497,895 | 477,386 | 453,594 | 469,019 | 517,976 | 497,895 | 517,976 | |||||
| (1) Includes investment income on assets backing surplus and income from policy loans. | ||||||||||||
| (2) Refer to the "Reconciliations" section of this document for a reconciliation of net revenue to adjusted operating revenue. | ||||||||||||
| (3) Excludes Net underwriting gain (loss) and other revenue. | ||||||||||||
| (4) Effective Q1 2023, includes asset balances associated with non-qualified retirement plans for clients using only our non-qualified solutions. Historical periods presented have been recast to conform with this change. | ||||||||||||
| (5) Includes asset eliminations previously reported in Recordkeeping and Retail Client Assets. This change has no impact on fee revenue, as fees are calculated using respective asset bases. Historical periods presented have been recast to conform with this change. |
| Voya Financial | Page 16 of 43 |
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Wealth Solutions Client Assets Rollforward by Product Group
| Three Months Ended | Year-to-Date | ||||||
|---|---|---|---|---|---|---|---|
| (in millions USD) | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 3/31/2023 | 3/31/2022 |
| Full service - Corporate markets | |||||||
| Client Assets, beginning of period | 85,965 | 80,126 | 83,320 | 94,424 | 99,689 | 85,965 | 99,689 |
| Transfers / Single deposits | 1,770 | 1,603 | 1,074 | 1,176 | 1,676 | 1,770 | 1,676 |
| Recurring deposits | 2,850 | 2,108 | 2,231 | 2,297 | 2,558 | 2,850 | 2,558 |
| Total Deposits | 4,621 | 3,710 | 3,305 | 3,473 | 4,235 | 4,621 | 4,235 |
| Surrenders, benefits, and product charges | (3,477) | (2,900) | (2,589) | (2,798) | (3,623) | (3,477) | (3,623) |
| Net Flows | 1,144 | 811 | 716 | 674 | 612 | 1,144 | 612 |
| Interest credited and investment performance | 4,506 | 5,028 | (3,909) | (11,778) | (5,877) | 4,506 | (5,877) |
| Client Assets, end of period - Corporate markets | 91,615 | 85,965 | 80,126 | 83,320 | 94,424 | 91,615 | 94,424 |
| Full service - Tax-exempt markets | |||||||
| Client Assets, beginning of period (1) | 76,672 | 73,102 | 75,608 | 83,703 | 87,985 | 76,672 | 87,985 |
| Transfers / Single deposits | 323 | 887 | 248 | 534 | 374 | 323 | 374 |
| Recurring deposits | 1,100 | 1,061 | 986 | 1,006 | 1,046 | 1,100 | 1,046 |
| Total Deposits | 1,424 | 1,948 | 1,235 | 1,540 | 1,420 | 1,424 | 1,420 |
| Surrenders, benefits, and product charges | (2,586) | (1,807) | (1,395) | (1,215) | (1,586) | (2,586) | (1,586) |
| Net Flows | (1,162) | 141 | (161) | 326 | (165) | (1,162) | (165) |
| Interest credited and investment performance | 3,513 | 3,428 | (2,346) | (8,420) | (4,117) | 3,513 | (4,117) |
| Client Assets, end of period - Tax-exempt markets (1) | 79,022 | 76,672 | 73,102 | 75,608 | 83,703 | 79,022 | 83,703 |
| Full Service - Total | |||||||
| Client Assets, beginning of period (1) | 162,636 | 153,228 | 158,928 | 178,126 | 187,674 | 162,636 | 187,674 |
| Transfers / Single deposits | 2,094 | 2,489 | 1,322 | 1,710 | 2,050 | 2,094 | 2,050 |
| Recurring deposits | 3,951 | 3,169 | 3,217 | 3,303 | 3,605 | 3,951 | 3,604 |
| Total Deposits | 6,044 | 5,658 | 4,539 | 5,013 | 5,655 | 6,044 | 5,655 |
| Surrenders, benefits, and product charges | (6,062) | (4,706) | (3,984) | (4,013) | (5,208) | (6,062) | (5,209) |
| Net Flows | (18) | 952 | 555 | 1,000 | 446 | (18) | 446 |
| Interest credited and investment performance | 8,019 | 8,456 | (6,255) | (20,198) | (9,994) | 8,019 | (9,994) |
| Client Assets, end of period - Full Service Total (1) | 170,637 | 162,636 | 153,228 | 158,928 | 178,126 | 170,637 | 178,126 |
| Full Service - Client Assets | |||||||
| Fee-based (1) | 137,792 | 129,171 | 119,299 | 125,179 | 144,853 | 137,792 | 144,853 |
| Spread-based | 32,845 | 33,466 | 33,929 | 33,749 | 33,273 | 32,845 | 33,273 |
| Client Assets, end of period - Full Service Total (1) | 170,637 | 162,636 | 153,228 | 158,928 | 178,126 | 170,637 | 178,126 |
| (1) Effective Q1 2023, includes asset balances associated with non-qualified retirement plans for clients using only our non-qualified solutions. Historical periods presented have been recast to conform with this change. |
| Voya Financial | Page 17 of 43 |
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Wealth Solutions Client Assets Rollforward by Product Group
| Three Months Ended | Year-to-Date | ||||||
|---|---|---|---|---|---|---|---|
| (in millions USD) | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 3/31/2023 | 3/31/2022 |
| Recordkeeping (1) | |||||||
| Client Assets, beginning of period | 254,957 | 241,241 | 248,931 | 274,065 | 283,744 | 254,957 | 283,744 |
| Transfers / Single deposits | 2,332 | 979 | 3,573 | 1,595 | 1,955 | 2,332 | 1,955 |
| Recurring deposits | 5,504 | 3,778 | 4,278 | 4,359 | 5,217 | 5,504 | 5,217 |
| Total Deposits | 7,836 | 4,758 | 7,851 | 5,954 | 7,171 | 7,836 | 7,172 |
| Surrenders, benefits, and product charges | (7,747) | (5,327) | (5,846) | (5,730) | (8,065) | (7,747) | (8,065) |
| Net Flows | 89 | (569) | 2,004 | 224 | (893) | 89 | (893) |
| Interest credited and investment performance | 11,993 | 14,285 | (9,694) | (25,358) | (8,785) | 11,993 | (8,785) |
| Client Assets, end of period - Recordkeeping | 267,038 | 254,957 | 241,241 | 248,931 | 274,065 | 267,038 | 274,065 |
| Total Defined Contribution (2) | |||||||
| Client Assets, beginning of period | 417,593 | 394,469 | 407,859 | 452,191 | 471,417 | 417,593 | 471,417 |
| Transfers / Single deposits | 4,425 | 3,469 | 4,895 | 3,304 | 4,005 | 4,425 | 4,005 |
| Recurring deposits | 9,455 | 6,947 | 7,495 | 7,663 | 8,822 | 9,455 | 8,822 |
| Total Deposits | 13,880 | 10,416 | 12,390 | 10,967 | 12,826 | 13,880 | 12,826 |
| Surrenders, benefits, and product charges | (13,810) | (10,033) | (9,831) | (9,743) | (13,273) | (13,810) | (13,273) |
| Net Flows | 70 | 383 | 2,559 | 1,224 | (447) | 70 | (447) |
| Interest credited and investment performance | 20,012 | 22,741 | (15,949) | (45,556) | (18,779) | 20,012 | (18,779) |
| Client Assets, end of period - Total Defined Contribution | 437,675 | 417,593 | 394,469 | 407,859 | 452,191 | 437,675 | 452,191 |
| Defined Contribution Investment-only Stable Value (SV) (3) | |||||||
| Assets, beginning of period | 38,148 | 38,944 | 39,622 | 40,391 | 40,246 | 38,148 | 40,246 |
| Transfers / Single deposits | 323 | 435 | 177 | 630 | 1,500 | 323 | 1,500 |
| Recurring deposits | 112 | 440 | 169 | 203 | 190 | 112 | 190 |
| Total Deposits | 435 | 875 | 346 | 833 | 1,690 | 435 | 1,690 |
| Surrenders, benefits, and product charges | (1,146) | (1,269) | (431) | (284) | (545) | (1,146) | (545) |
| Net Flows | (710) | (394) | (84) | 549 | 1,144 | (710) | 1,144 |
| Interest credited and investment performance | 344 | (402) | (593) | (1,319) | (1,000) | 344 | (1,000) |
| Assets, end of period - Defined Contribution Investment-only SV | 37,781 | 38,148 | 38,944 | 39,622 | 40,391 | 37,781 | 40,391 |
| Retail Client Assets (1)(4) | 25,762 | 24,913 | 23,553 | 24,897 | 28,947 | 25,762 | 28,947 |
| Other Assets (5) | 4,250 | 4,243 | 3,983 | 4,022 | 4,190 | 4,250 | 4,190 |
| Eliminations (1) | (7,574) | (7,511) | (7,355) | (7,381) | (7,743) | (7,574) | (7,743) |
| Total Client Assets (6) | 497,895 | 477,386 | 453,594 | 469,019 | 517,976 | 497,895 | 517,976 |
| (1) Includes asset eliminations previously reported in Recordkeeping and Retail Client Assets. This change has no impact on fee revenue, as fees are calculated using respective asset bases. Historical periods presented have been recast to conform with this change. | |||||||
| (2) Total of Full Service and Recordkeeping. | |||||||
| (3) Includes Stable Value Investment-only Wrap and Stable Value Separate Accounts. | |||||||
| (4) Includes assets of our Retail Wealth Management business, as well as assets in a proprietary IRA mutual fund product that is distributed by both VFA (affiliated) and non-affiliated advisors. | |||||||
| (5) Includes other guaranteed payout products and Non-qualified Retirement Plans. | |||||||
| (6) Effective Q1 2023, includes asset balances associated with non-qualified retirement plans for clients using only our non-qualified solutions. Historical periods presented have been recast to conform with this change. |
Health Solutions
| Voya Financial | Page 19 of 43 |
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Health Solutions Sources of Adjusted Operating Earnings before income taxes
| Year-to-Date | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions ) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 3/31/2023 | 3/31/2022 | |||||||
| Sources of operating earnings before income taxes: | |||||||||||||
| Gross investment income | 24 | 24 | 25 | 23 | 24 | 23 | |||||||
| Investment expenses | (1) | (1) | (1) | (1) | (1) | (1) | |||||||
| Credited interest | (12) | (13) | (13) | (13) | (12) | (13) | |||||||
| Net margin | 11 | 11 | 10 | 9 | 11 | 9 | |||||||
| Other investment income | 14 | 13 | 12 | 12 | 12 | 12 | |||||||
| Investment spread and other investment income, excluding alts/prepays above/below expectations | 24 | 24 | 22 | 20 | 23 | 20 | |||||||
| Alternative investment income and prepayment fees above (below) long-term expectations | (5) | (7) | — | 5 | (2) | 5 | |||||||
| Investment spread and other investment income | 19 | 17 | 22 | 25 | 21 | 25 | |||||||
| Fee based margin (1) | 3 | 4 | 4 | 5 | 53 | 5 | |||||||
| Net underwriting gain (loss) and other revenue | 202 | 289 | 172 | 139 | 233 | 139 | |||||||
| Net revenue (2) | 225 | 310 | 198 | 169 | 306 | 169 | |||||||
| Administrative expenses | (71) | (66) | (67) | (72) | (124) | (72) | |||||||
| Premium taxes, fees and assessments | (27) | (39) | (32) | (28) | (35) | (28) | |||||||
| Net commissions | (43) | (41) | (42) | (42) | (44) | (42) | |||||||
| DAC/VOBA and other intangibles amortization | (7) | (9) | (7) | (6) | (8) | (6) | |||||||
| Adjusted operating earnings before income taxes | 78 | 154 | 50 | 21 | 94 | 21 | |||||||
| Adjusted Operating Margin TTM | % | 33.7 | % | 30.3 | % | 23.4 | % | 25.5 | % | ||||
| Adjusted Operating Margin Excluding Notables TTM | % | 33.0 | % | 31.2 | % | 29.6 | % | 31.6 | % | ||||
| Group life: | |||||||||||||
| Premiums | 151 | 150 | 148 | 143 | 157 | 143 | |||||||
| Benefits | (124) | (50) | (133) | (166) | (134) | (166) | |||||||
| Other (3) | (1) | (2) | (1) | (2) | (3) | (2) | |||||||
| Total Group life | 26 | 98 | 14 | (25) | 21 | (25) | |||||||
| Group Life Loss Ratio (Interest adjusted) | % | 82.3 | % | 71.4 | % | 89.5 | % | 115.8 | % | 89.8 | % | 115.8 | % |
| Group stop loss: | |||||||||||||
| Premiums | 314 | 311 | 302 | 303 | 358 | 303 | |||||||
| Benefits | (226) | (238) | (238) | (232) | (251) | (232) | |||||||
| Other (3) | (1) | (1) | (1) | (1) | (1) | (1) | |||||||
| Total Group stop loss | 87 | 72 | 63 | 70 | 106 | 70 | |||||||
| Stop loss Loss Ratio | % | 72.0 | % | 76.4 | % | 78.9 | % | 76.5 | % | 70.1 | % | 76.5 | % |
| Voluntary Benefits, Disability, and Other | 93 | 123 | 99 | 99 | 106 | 99 | |||||||
| Net underwriting gain (loss) and other revenue | |||||||||||||
| Premiums | 626 | 619 | 609 | 602 | 688 | 602 | |||||||
| Benefits | (420) | (326) | (430) | (460) | (450) | (460) | |||||||
| Other (3) | (4) | (3) | (8) | (4) | (4) | (4) | |||||||
| Total Net underwriting gain (loss) and other revenue | 202 | 289 | 172 | 139 | 233 | 139 | |||||||
| Total Aggregate Loss Ratio TTM (4) | % | 68.9 | % | 70.7 | % | 73.1 | % | 73.3 | % | 66.3 | % | 73.3 | % |
| (1) Includes fees for subscriptions and services associated with cloud-based benefits software and Health Account Solutions products | |||||||||||||
| (2) Refer to the "Reconciliations" section of this document for a reconciliation of net revenue to adjusted operating revenue. | |||||||||||||
| (3) Includes service fees, dividends, interest expenses, and other miscellaneous expenses. The Loss Ratio calculation does not include Other. | |||||||||||||
| (4) Loss ratio excludes 57M of favorable reserve release in 3Q'22 related to our annual assumption update. |
All values are in US Dollars.
| Voya Financial | Page 20 of 43 |
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Health Solutions Key Metrics
| Three Months Ended or As of | Year-to-Date or As of | ||||||
|---|---|---|---|---|---|---|---|
| (in millions USD) | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 3/31/2023 | 3/31/2022 |
| Sales by Product Line: | |||||||
| Group life and Disability | 104 | 23 | 4 | 14 | 86 | 104 | 86 |
| Stop loss | 343 | 20 | 42 | 24 | 323 | 343 | 323 |
| Voluntary and Other (1) | 90 | 13 | 12 | 20 | 104 | 90 | 104 |
| Total sales by product line | 538 | 56 | 58 | 58 | 513 | 538 | 513 |
| Total gross premiums and deposits | 761 | 687 | 707 | 671 | 660 | 761 | 660 |
| Annualized In-force Premiums and Fees by Product Line: | |||||||
| Group life and Disability | 912 | 833 | 817 | 811 | 807 | 912 | 807 |
| Stop loss | 1,457 | 1,258 | 1,259 | 1,231 | 1,220 | 1,457 | 1,220 |
| Voluntary and Other (1) | 930 | 689 | 684 | 681 | 678 | 930 | 678 |
| Total annualized in-force premiums and fees by product line | 3,300 | 2,780 | 2,760 | 2,722 | 2,705 | 3,300 | 2,705 |
| Assets Under Management by Fund Group: | |||||||
| General account | 1,829 | 1,866 | 1,938 | 1,981 | 1,886 | 1,829 | 1,886 |
| Separate account | 15 | 14 | 14 | 15 | 17 | 15 | 17 |
| Total AUM | 1,844 | 1,880 | 1,952 | 1,996 | 1,903 | 1,844 | 1,903 |
| (1) Includes benefit administration annual recurring revenue and Health Account Solutions products. |
Investment Management
| Voya Financial | Page 22 of 43 |
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Investment Management Sources of Adjusted Operating Earnings Before Income Taxes
| Three Months Ended | Year-to-Date | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions USD) | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 3/31/2023 | 3/31/2022 | |||||
| Sources of operating earnings before income taxes: | ||||||||||||
| Investment capital and other investment income, excluding alts/prepays above/below expectations | 8 | 8 | 8 | 8 | 8 | 8 | 8 | |||||
| Alternative investment income and prepayment fees above (below) long-term expectations | 2 | (9) | (20) | (3) | 3 | 2 | 3 | |||||
| Investment spread and other investment income | 10 | (1) | (12) | 6 | 11 | 10 | 11 | |||||
| Fee based margin (1) | 218 | 216 | 204 | 165 | 167 | 218 | 167 | |||||
| Net revenue (2) | 229 | 215 | 192 | 171 | 178 | 229 | 178 | |||||
| Administrative expenses (3) | (186) | (158) | (142) | (131) | (139) | (186) | (139) | |||||
| Adjusted operating earnings before income taxes, including Allianz noncontrolling interest | 42 | 57 | 51 | 40 | 39 | 42 | 39 | |||||
| Adjusted Operating Margin TTM | 23.4 | % | 24.7 | % | 25.5 | % | 26.8 | % | 29.4 | % | ||
| Adjusted Operating Margin Excluding Notables TTM | 25.4 | % | 26.8 | % | 26.0 | % | 24.1 | % | 25.2 | % | ||
| Fee based margin (1) | ||||||||||||
| Investment advisory and administrative revenue | 216 | 209 | 202 | 160 | 165 | 216 | 165 | |||||
| Other fee based margin | 2 | 6 | 2 | 6 | 2 | 2 | 2 | |||||
| Fee based margin | 218 | 216 | 204 | 165 | 167 | 218 | 167 | |||||
| Reconciliation to Adjusted operating earnings before income taxes | ||||||||||||
| Adjusted operating earnings before income taxes, including Allianz noncontrolling interest | 42 | 57 | 51 | 40 | 39 | 42 | 39 | |||||
| Less: Earnings (loss) attributable to Allianz noncontrolling interest | 9 | 14 | 13 | — | — | 9 | — | |||||
| Adjusted operating earnings before income taxes | 33 | 42 | 38 | 40 | 39 | 33 | 39 | |||||
| (1) Includes mutual fund third party distribution revenues which are reported net of distribution expenses, consistent with the U.S. GAAP presentation. | ||||||||||||
| (2) Refer to the "Reconciliations" section of this document for a reconciliation of net revenue to adjusted operating revenue. | ||||||||||||
| (3) Includes expenses attributable to investment capital results above (below) long-term expectations. |
| Voya Financial | Page 23 of 43 |
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Investment Management Analysis of AUM and AUA
| Three Months Ended | Year-to-Date | ||||||
|---|---|---|---|---|---|---|---|
| (in millions USD) | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 3/31/2023 | 3/31/2022 |
| Client Assets: | |||||||
| External Clients | |||||||
| Institutional | 164,443 | 161,502 | 160,720 | 136,596 | 143,581 | 164,443 | 143,581 |
| Retail | 126,212 | 121,833 | 118,016 | 61,070 | 71,578 | 126,212 | 71,578 |
| Subtotal External Clients | 290,654 | 283,335 | 278,735 | 197,666 | 215,159 | 290,654 | 215,159 |
| General Account | 36,934 | 38,028 | 38,614 | 38,686 | 38,049 | 36,934 | 38,049 |
| Total Client Assets (AUM) | 327,589 | 321,363 | 317,349 | 236,352 | 253,208 | 327,589 | 253,208 |
| Assets under Advisement and Administration (AUA) | 56,310 | 55,601 | 51,862 | 53,359 | 57,187 | 56,310 | 57,187 |
| Total AUM and AUA | 383,899 | 376,963 | 369,210 | 289,710 | 310,395 | 383,899 | 310,395 |
| Investment Advisory and Administrative Revenues (1) | |||||||
| External Clients | |||||||
| Institutional | 92 | 90 | 89 | 86 | 87 | 92 | 87 |
| Retail | 99 | 95 | 88 | 49 | 53 | 99 | 53 |
| Subtotal External Clients | 191 | 185 | 177 | 134 | 140 | 191 | 140 |
| General Account | 20 | 20 | 20 | 20 | 20 | 20 | 20 |
| Total Investment Advisory and Administrative Revenues (AUM) | 211 | 205 | 197 | 154 | 160 | 211 | 160 |
| Administration Only Fees | 5 | 5 | 5 | 5 | 5 | 5 | 5 |
| Total Investment Advisory and Administrative Revenues | 216 | 209 | 202 | 160 | 165 | 216 | 165 |
| Revenue Yield (bps) (1) | |||||||
| External Clients | |||||||
| Institutional | 22.6 | 22.1 | 21.4 | 24.5 | 23.7 | 22.6 | 23.7 |
| Retail | 31.6 | 31.1 | 28.0 | 29.4 | 29.1 | 31.6 | 29.1 |
| Revenue Yield on External Clients (2) | 26.5 | 26.0 | 24.3 | 26.1 | 25.5 | 26.5 | 25.5 |
| General Account | 20.8 | 20.8 | 21.1 | 21.1 | 21.1 | 20.8 | 21.1 |
| Revenue Yield on Client Assets (AUM) | 25.8 | 25.3 | 23.9 | 25.3 | 24.8 | 25.8 | 24.8 |
| Revenue Yield on Advisement and Administrative Only Assets (AUA) | 3.7 | 3.7 | 3.4 | 3.8 | 3.5 | 3.7 | 3.5 |
| Total Revenue Yield on AUM and AUA (bps) | 22.6 | 22.3 | 21.0 | 21.3 | 20.9 | 22.6 | 20.9 |
| Revenue Yield on Client Assets (AUM) - trailing twelve months | 23.1 | 21.3 | 25.2 | 25.8 | 25.4 | 23.1 | 25.4 |
| (1) Investment Advisory and Administrative Revenues and resulting Revenue Yields exclude any performance fees. | |||||||
| (2) External client yields do not reflect a full quarter of revenues resulting from the Allianz transaction. |
| Voya Financial | Page 24 of 43 |
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Investment Management Account Rollforward by Source
| Three Months Ended | Year-to-Date | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions USD) | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 3/31/2023 | 3/31/2022 | |||||||
| Institutional AUM: | ||||||||||||||
| Beginning of period AUM | 161,503 | 160,720 | 136,595 | 143,580 | 148,921 | 161,503 | 148,921 | |||||||
| Inflows | 5,739 | 8,249 | 4,759 | 5,500 | 5,963 | 5,739 | 5,963 | |||||||
| Outflows | (6,683) | (7,904) | (5,648) | (3,502) | (3,742) | (6,683) | (3,742) | |||||||
| Net flows- Institutional | (945) | 345 | (889) | 1,998 | 2,221 | (945) | 2,221 | |||||||
| Change in Market Value | 5,171 | 2,341 | (5,815) | (8,803) | (7,411) | 5,171 | (7,411) | |||||||
| Other (Including Acquisitions / Divestitures) | (1,286) | (1,903) | 30,828 | (180) | (151) | (1,286) | (151) | |||||||
| End of period AUM - Institutional | 164,443 | 161,503 | 160,720 | 136,595 | 143,580 | 164,443 | 143,580 | |||||||
| Organic Growth (Net Flows/Beginning of period AUM) | -0.6 | % | 0.2 | % | -0.7 | % | 1.4 | % | 1.5 | % | -0.6 | % | 1.5 | % |
| Market Growth % | 3.2 | % | 1.5 | % | -4.3 | % | -6.1 | % | -5.0 | % | 3.2 | % | -5.0 | % |
| Retail AUM: | ||||||||||||||
| Beginning of period AUM | 121,833 | 118,016 | 61,070 | 71,579 | 76,908 | 121,833 | 76,908 | |||||||
| Inflows | 8,361 | 7,203 | 6,683 | 2,290 | 2,609 | 8,361 | 2,609 | |||||||
| Outflows | (8,019) | (7,400) | (6,754) | (3,728) | (3,502) | (8,019) | (3,502) | |||||||
| Net flows- Retail | 342 | (198) | (71) | (1,439) | (893) | 342 | (893) | |||||||
| Net Money Market Flows | (36) | 51 | 45 | 120 | (18) | (36) | (18) | |||||||
| Change in Market Value | 4,242 | 3,232 | (6,332) | (8,352) | (4,181) | 4,242 | (4,181) | |||||||
| Net Flows from Divested Businesses | (515) | (497) | (467) | (525) | (668) | (515) | (668) | |||||||
| Other (Including Acquisitions / Divestitures) | 346 | 1,229 | 63,771 | (313) | 431 | 346 | 431 | |||||||
| End of period AUM - Retail | 126,212 | 121,833 | 118,016 | 61,070 | 71,579 | 126,212 | 71,579 | |||||||
| Retail Organic Growth excluding Net Flows from Divested Businesses and Sub-advisor <br>Replacements (Net Flows / Beginning of period AUM) | 0.3 | % | -0.2 | % | -0.1 | % | -2.0 | % | -1.2 | % | 0.3 | % | -1.2 | % |
| Market Growth % | 3.5 | % | 2.7 | % | -10.4 | % | -11.7 | % | -5.4 | % | 3.5 | % | -5.4 | % |
| Net Flows: | ||||||||||||||
| Institutional Net Flows | (945) | 345 | (889) | 1,998 | 2,221 | (945) | 2,221 | |||||||
| Retail Net Flows | 342 | (198) | (71) | (1,439) | (893) | 342 | (893) | |||||||
| Net Flows from Divested Businesses | (515) | (497) | (467) | (525) | (668) | (515) | (668) | |||||||
| Total Net Flows | (1,118) | (350) | (1,427) | 34 | 660 | (1,118) | 660 | |||||||
| Net Flows excluding Net Flows from Divested Businesses and Sub-advisor Replacements | (602) | 147 | (960) | 559 | 1,328 | (602) | 1,328 | |||||||
| Total External Clients Organic Growth (Net Flows excluding Divested Businesses and Sub-advisor Replacement / Beginning period AUM)(1) | -0.2 | % | 0.1 | % | -0.5 | % | 0.3 | % | 0.6 | % | -0.2 | % | 0.6 | % |
| (1) Includes net flows related to Allianz transaction as of July 25, 2022. |
| Voya Financial | Page 25 of 43 |
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Investment Management Account Value by Asset Type
| Balances as of | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (in millions USD) | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | |||||
| Institutional | ||||||||||
| Equity | 24,470 | 22,943 | 22,835 | 12,086 | 14,830 | |||||
| Fixed Income - Public | 59,786 | 57,532 | 59,752 | 62,378 | 67,693 | |||||
| Fixed Income - Privates | 67,126 | 67,809 | 63,361 | 47,177 | 45,985 | |||||
| Alternatives | 13,060 | 13,218 | 14,771 | 14,955 | 15,073 | |||||
| Money Market | — | — | — | — | — | |||||
| Total | 164,443 | 161,502 | 160,720 | 136,596 | 143,581 | |||||
| Retail | ||||||||||
| Equity | 63,429 | 60,244 | 57,343 | 36,100 | 44,128 | |||||
| Fixed Income - Public | 59,638 | 58,480 | 57,714 | 22,124 | 24,749 | |||||
| Fixed Income - Privates | 455 | 483 | 499 | 547 | 611 | |||||
| Alternatives | 902 | 822 | 724 | 611 | 542 | |||||
| Money Market | 1,788 | 1,803 | 1,736 | 1,688 | 1,548 | |||||
| Total | 126,212 | 121,833 | 118,016 | 61,070 | 71,578 | |||||
| General Account | ||||||||||
| Equity | 237 | 237 | 241 | 242 | 216 | |||||
| Fixed Income - Public | 19,286 | 19,748 | 20,701 | 20,416 | 20,217 | |||||
| Fixed Income - Privates | 14,826 | 14,942 | 14,877 | 14,764 | 14,500 | |||||
| Alternatives | 2,226 | 2,378 | 2,450 | 2,732 | 2,628 | |||||
| Money Market | 360 | 724 | 344 | 532 | 488 | |||||
| Total | 36,934 | 38,028 | 38,614 | 38,686 | 38,049 | |||||
| Combined Asset Type | ||||||||||
| Equity | 88,136 | 83,424 | 80,419 | 48,429 | 59,174 | |||||
| Fixed Income - Public | 138,710 | 135,760 | 138,166 | 104,917 | 112,659 | |||||
| Fixed Income - Privates | 82,406 | 83,234 | 78,737 | 62,488 | 61,097 | |||||
| Alternatives | 16,189 | 16,418 | 17,945 | 18,298 | 18,243 | |||||
| Money Market | 2,148 | 2,527 | 2,080 | 2,220 | 2,036 | |||||
| Total | 327,589 | 321,363 | 317,349 | 236,352 | 253,208 | |||||
| Total Private and Alternative Assets | 98,595 | 99,652 | 96,683 | 80,786 | 79,340 | |||||
| % of Private and Alternative Assets / Total AUM | 30.1 | % | 31.0 | % | 30.5 | % | 34.2 | % | 31.3 | % |
| Total Wealth Assets (1) | 166,679 | 162,355 | 158,900 | 101,885 | 110,305 | |||||
| % of Wealth Assets / Total AUM | 50.9 | % | 50.5 | % | 50.1 | % | 43.1 | % | 43.6 | % |
| (1) Total Wealth Assets includes affiliated and non-affiliated Institutional defined contribution plan assets, Retail mutual funds, separately managed accounts, and general account assets considered to be wealth accumulation. |
Corporate
| Voya Financial | Page 27 of 43 |
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Corporate Adjusted Operating Earnings Before Income Taxes
| Three Months Ended | Year-to-Date | ||||||
|---|---|---|---|---|---|---|---|
| (in millions USD) | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 3/31/2023 | 3/31/2022 |
| Interest expense (excluding Preferred stock dividends) (1) | (33) | (33) | (35) | (36) | (38) | (33) | (38) |
| Preferred stock dividends | (14) | (4) | (14) | (4) | (14) | (14) | (14) |
| Stranded costs net of TSA revenue | — | — | (1) | (4) | (4) | — | (4) |
| Pension expense (2) | (11) | (11) | (10) | (10) | (10) | (11) | (10) |
| Other (3) | (11) | (12) | (6) | (6) | (2) | (11) | (2) |
| Adjusted operating earnings before income taxes, including Allianz noncontrolling interest | (69) | (60) | (66) | (60) | (68) | (69) | (68) |
| Less: Earnings (loss) attributable to Allianz noncontrolling interest | (1) | (1) | — | — | — | (1) | — |
| Adjusted operating earnings before income taxes | (68) | (59) | (65) | (60) | (68) | (68) | (68) |
| (1) Includes other operating expenses related to financing agreements. | |||||||
| (2) Pension expense includes service costs for our qualified defined benefit pension plan and service and interest costs for our non-qualified defined benefit pension plan, but excludes the estimated return on plan assets net of interest costs for our qualified defined benefit pension plan as well as net actuarial gains (losses) related to all of our pension plans and other post retirement plans, which includes actuarial gains and (losses) as a result of differences between actual and expected experience on plan assets or projected benefit obligations. | |||||||
| (3) Other primarily includes changes in incentive compensation accruals for above (below) target performance, corporate insurance costs, and certain corporate expenses that are either short duration projects or other items not expected to recur at the same level. |
Net Revenue, Adjusted Operating Margin,
Administrative Expenses, and Adjusted Operating Return on Capital
| Voya Financial | Page 29 of 43 |
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Net Revenue and Adjusted Operating Margin
| Three Months Ended | Twelve Months Ended | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions USD) | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 3/31/2023 | 3/31/2022 | |||||||
| Net Revenue Excluding Notable Items | ||||||||||||||
| Wealth Solutions | ||||||||||||||
| Investment spread and other investment income | 245 | 249 | 246 | 233 | 217 | 973 | 824 | |||||||
| Fee based margin | 247 | 241 | 244 | 257 | 268 | 989 | 1,114 | |||||||
| Net underwriting gain (loss) and other revenue | 4 | 5 | 3 | 4 | 1 | 16 | (4) | |||||||
| Wealth Solutions Net Revenue | 496 | 495 | 493 | 494 | 486 | 1,978 | 1,934 | |||||||
| Health Solutions | ||||||||||||||
| Investment spread and other investment income | 23 | 24 | 24 | 22 | 20 | 93 | 74 | |||||||
| Fee based margin | 53 | 3 | 4 | 4 | 5 | 64 | 13 | |||||||
| Net underwriting gain (loss) and other revenue | 233 | 202 | 232 | 172 | 179 | 839 | 705 | |||||||
| Health Solutions Net Revenue | 309 | 230 | 260 | 198 | 204 | 997 | 792 | |||||||
| Investment Management | ||||||||||||||
| Investment capital and other investment income | 8 | 8 | 8 | 8 | 8 | 32 | 31 | |||||||
| Fee based margin | 218 | 216 | 204 | 165 | 167 | 803 | 685 | |||||||
| Investment Management Net Revenue | 227 | 224 | 212 | 173 | 175 | 836 | 716 | |||||||
| Total Net Revenue Excluding Notable Items (1) | 1,032 | 949 | 965 | 865 | 865 | 3,811 | 3,442 | |||||||
| Adjusted Operating Earnings Excluding Notable Items | ||||||||||||||
| Wealth Solutions | 166 | 195 | 198 | 204 | 176 | 763 | 713 | |||||||
| Health Solutions | 97 | 83 | 105 | 51 | 56 | 335 | 250 | |||||||
| Investment Management | 41 | 64 | 67 | 42 | 37 | 212 | 181 | |||||||
| Total Adjusted Operating Earnings Excluding Corporate and Notable Items (1) | 303 | 342 | 370 | 297 | 269 | 1,310 | 1,144 | |||||||
| Corporate | (69) | (60) | (65) | (60) | (68) | (255) | (255) | |||||||
| Total Adjusted operating earnings Excluding Notable Items, including Allianz noncontrolling interest | 234 | 282 | 305 | 236 | 201 | 1,055 | 889 | |||||||
| Less: Earnings (loss) attributable to Allianz noncontrolling interest excluding notable items | 8 | 13 | 13 | — | — | 34 | — | |||||||
| Total Adjusted Operating Earnings Excluding Notable Items (1) | 226 | 269 | 291 | 236 | 201 | 1,022 | 889 | |||||||
| Adjusted Operating Margin Excluding Notable Items | ||||||||||||||
| Wealth Solutions | 33.4 | % | 39.3 | % | 40.2 | % | 41.4 | % | 36.2 | % | 38.6 | % | 36.9 | % |
| Health Solutions | 31.3 | % | 36.0 | % | 40.2 | % | 25.5 | % | 27.5 | % | 33.5 | % | 31.6 | % |
| Investment Management | 18.0 | % | 28.6 | % | 31.6 | % | 24.3 | % | 21.1 | % | 25.4 | % | 25.2 | % |
| Total Adjusted Operating Margin Excluding Corporate and Notable Items | 29.4 | % | 36.0 | % | 38.2 | % | 34.2 | % | 31.1 | % | 34.4 | % | 33.2 | % |
| Total Adjusted Operating Margin Including Corporate, Excluding Notable Items | 22.7 | % | 29.7 | % | 31.5 | % | 27.3 | % | 23.2 | % | 27.7 | % | 25.8 | % |
| Adjusted Operating Margin Excluding Notable Items Trailing Twelve Months | ||||||||||||||
| Wealth Solutions | 38.6 | % | 39.3 | % | 37.9 | % | 37.7 | % | 36.9 | % | ||||
| Health Solutions | 33.5 | % | 33.0 | % | 31.2 | % | 29.6 | % | 31.6 | % | ||||
| Investment Management | 25.4 | % | 26.8 | % | 26.0 | % | 24.1 | % | 25.2 | % | ||||
| Total Adjusted Operating Margin Excluding Corporate and Notable Items | 34.4 | % | 35.0 | % | 33.7 | % | 33.0 | % | 33.2 | % | ||||
| Total Adjusted Operating Margin Including Corporate, Excluding Notable Items | 27.7 | % | 28.1 | % | 26.8 | % | 25.9 | % | 25.8 | % | ||||
| (1) Refer to the “Reconciliations” section for a reconciliation of net revenue to net revenues excluding notable items and of adjusted operating earnings before income taxes to adjusted operating earnings excluding notable items. |
| Voya Financial | Page 30 of 43 |
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Administrative Expenses
| Three Months Ended | Twelve Months Ended | ||||||
|---|---|---|---|---|---|---|---|
| (in millions USD) | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 3/31/2023 | 3/31/2022 |
| Wealth Solutions | (251) | (223) | (214) | (207) | (223) | (895) | (889) |
| Health Solutions | (124) | (71) | (66) | (67) | (72) | (328) | (253) |
| Investment Management | (186) | (158) | (142) | (131) | (139) | (617) | (546) |
| Stranded costs net of TSA revenue (1) | — | — | (1) | (4) | (4) | (5) | (6) |
| Total Administrative Expenses (1)(2) | (561) | (452) | (423) | (409) | (438) | (1,845) | (1,694) |
| (1) Includes Stranded Costs, net of associated TSA revenue, subsequent to the closing of the Individual Life Transaction. | |||||||
| (2) Excludes certain expenses reported in Corporate related to changes in incentive compensation accruals for above (below) target performance, pension expense, and certain corporate expenses that are either short duration projects or expenses not expected to recur at the same level. |
| Voya Financial | Page 31 of 43 |
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Adjusted Operating Return on Allocated Capital
| Twelve Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (in millions USD, unless otherwise indicated) | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | |||||
| Wealth Solutions | ||||||||||
| Adjusted operating earnings before income taxes - before interest | 602 | 697 | 798 | 990 | 1,077 | |||||
| Income tax expense | 77 | 98 | 122 | 164 | 185 | |||||
| Adjusted Operating Earnings - before interest and after income taxes | 525 | 599 | 676 | 826 | 892 | |||||
| Adjusted Operating effective tax rate (1) | 10.9 | % | 12.7 | % | 11.6 | % | 14.9 | % | 15.7 | % |
| Adjusted Operating effective tax rate - Trailing Twelve Months | 12.8 | % | 14.1 | % | 15.3 | % | 16.6 | % | 17.2 | % |
| Average Capital | 3,679 | 3,710 | 3,730 | 3,742 | 3,738 | |||||
| Ending Capital (2) | 3,520 | 3,670 | 3,677 | 3,749 | 3,721 | |||||
| Adjusted Return on Capital | 14.2 | % | 16.1 | % | 18.1 | % | 22.1 | % | 23.9 | % |
| Health Solutions | ||||||||||
| Adjusted operating earnings before income taxes - before interest | 376 | 304 | 256 | 171 | 185 | |||||
| Income tax expense | 79 | 64 | 54 | 36 | 39 | |||||
| Adjusted Operating Earnings - before interest and after income taxes | 297 | 240 | 202 | 135 | 146 | |||||
| Adjusted Operating effective tax rate (1) | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % |
| Adjusted Operating effective tax rate - Trailing Twelve Months | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % |
| Average Capital | 698 | 591 | 555 | 528 | 513 | |||||
| Ending Capital (2) | 1,263 | 662 | 650 | 576 | 549 | |||||
| Adjusted Return on Capital | 42.6 | % | 40.6 | % | 36.6 | % | 25.7 | % | 28.6 | % |
| Investment Management | ||||||||||
| Adjusted operating earnings before income taxes - before interest | 153 | 158 | 176 | 201 | 227 | |||||
| Income tax expense | 32 | 33 | 37 | 42 | 48 | |||||
| Adjusted Operating Earnings - before interest and after income taxes | 121 | 125 | 139 | 159 | 179 | |||||
| Adjusted Operating effective tax rate (1) | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % |
| Adjusted Operating effective tax rate - Trailing Twelve Months | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % |
| Average Capital | 673 | 582 | 488 | 427 | 403 | |||||
| Ending Capital (2) | 810 | 797 | 778 | 486 | 458 | |||||
| Adjusted Return on Capital | 17.9 | % | 21.5 | % | 28.3 | % | 37.0 | % | 44.3 | % |
| (1) We assume a 21% tax rate on segment Adjusted operating earnings, less the estimated benefit of the dividends received deduction and foreign tax credits in our Wealth Solutions segment. | ||||||||||
| (2) Capital is allocated to each of our segments in proportion to each segment’s target statutory capital, plus an allocation of the differences between statutory capital and total Voya Financial, Inc. shareholders' equity on a GAAP basis (excluding AOCI), based on each segment’s portion of these differences. |
Investment Information
| Voya Financial | Page 33 of 43 |
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Portfolio Results GAAP Book Value, Gross Investment Income, and Earned Rate by Asset Class
| Three Months Ended or As of | Year-to-Date or As of | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions USD) | 3/31/2023 | 12/31/2022 | 3/31/2023 | |||||||||||||||
| Invested Assets | ||||||||||||||||||
| Book Values, Gross investment income and Earned rate (1) | Book Value | BV % | Gross Investment Income | Earned Rate (annualized) | Book Value | BV % | Gross Investment Income | Earned Rate (annualized) | Book Value | BV % | Gross Investment Income | Earned Rate (annualized) | ||||||
| Public corporate | 11,880 | 30.0 | % | 148 | 5.0 | % | 12,179 | 30.0 | % | 163 | 5.2 | % | 11,880 | 30.0 | % | 149 | 5.0 | % |
| Private credit | 8,134 | 20.0 | % | 90 | 4.5 | % | 8,222 | 20.0 | % | 84 | 4.2 | % | 8,134 | 20.0 | % | 91 | 4.5 | % |
| Securitized (2)(3) | 10,667 | 27.0 | % | 156 | 6.0 | % | 10,654 | 26.0 | % | 157 | 6.0 | % | 10,667 | 27.0 | % | 156 | 6.0 | % |
| Commercial mortgage loans | 5,315 | 13.0 | % | 60 | 4.6 | % | 5,413 | 13.0 | % | 59 | 4.5 | % | 5,315 | 13.0 | % | 61 | 4.6 | % |
| Municipals | 921 | 2.0 | % | 9 | 4.0 | % | 952 | 2.0 | % | 10 | 4.0 | % | 921 | 2.0 | % | 9 | 4.0 | % |
| Short-term / Treasury | 447 | 1.0 | % | 5 | 4.4 | % | 627 | 2.0 | % | 7 | 4.4 | % | 447 | 1.0 | % | 5 | 4.4 | % |
| Equity securities | 284 | 1.0 | % | 5 | 6.7 | % | 290 | 1.0 | % | 4 | 5.5 | % | 284 | 1.0 | % | 5 | 6.7 | % |
| Policy loans | 359 | 1.0 | % | 6 | 6.7 | % | 363 | 1.0 | % | 5 | 5.3 | % | 359 | 1.0 | % | 6 | 6.7 | % |
| Derivatives | (11) | — | % | 3 | N/A | (11) | — | % | 3 | N/A | (11) | — | % | 3 | N/A | |||
| Book Values and Gross Investment Income before variable components | 37,996 | 95.0 | % | 483 | 5.1 | % | 38,689 | 96.0 | % | 491 | 5.1 | % | 37,996 | 95.0 | % | 485 | 5.2 | % |
| Book Values and Gross Investment Income on variable components | ||||||||||||||||||
| Limited partnership | 1,794 | 5.0 | % | 13 | 2.9 | % | 1,774 | 4.0 | % | (7) | -1.5 | % | 1,794 | 5.0 | % | 13 | 2.9 | % |
| Prepayment / Other fee income | N/A | N/A | 2 | — | % | N/A | N/A | — | — | % | N/A | N/A | — | — | % | |||
| Book Values and Gross Investment Income (variable) | 1,794 | 5.0 | % | 15 | — | % | 1,774 | 4.0 | % | (6) | — | % | 1,794 | 5.0 | % | 13 | — | % |
| Total Book Values and Gross Investment Income reflected in Adjusted Operating Earnings | 39,790 | 100.0 | % | 498 | 5.1 | % | 40,464 | 100.0 | % | 485 | 4.8 | % | 39,790 | 100.0 | % | 498 | 5.1 | % |
| (1) Table represents annualized yield for Voya's General Account assets. Investment results related to businesses exited through reinsurance or divestment, and other miscellaneous items are excluded. | ||||||||||||||||||
| (2) Includes operating investment income from CMO-B portfolio assets, including derivatives. | ||||||||||||||||||
| (3) For CMO-B securities subject to the fair value option, operating investment income is determined by applying the prospective cash flow yield. Other income attributable to market value changes are excluded. |
| Voya Financial | Page 34 of 43 |
|---|
Portfolio Results Statutory Carrying Values by Asset Class and NAIC Ratings
| Three Months Ended or As of (1) | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions USD) | 12/31/2022 | 09/30/2022 | 06/30/2022 | 03/31/2022 | ||||||||
| Statutory Carrying Value | Statutory Value | SV % | Statutory Value | SV % | Statutory Value | SV % | Statutory Value | SV % | ||||
| Public corporate | 12,282 | 30.0 | % | 13,187 | 32.0 | % | 13,145 | 32.0 | % | 13,151 | 32.0 | % |
| Private credit | 8,014 | 20.0 | % | 7,958 | 19.0 | % | 7,989 | 19.0 | % | 7,773 | 19.0 | % |
| Securitized | 10,688 | 26.0 | % | 10,663 | 26.0 | % | 10,469 | 25.0 | % | 10,024 | 25.0 | % |
| Municipals | 952 | 2.0 | % | 966 | 2.0 | % | 964 | 2.0 | % | 957 | 2.0 | % |
| Short-term / Treasury | 978 | 2.0 | % | 802 | 2.0 | % | 891 | 2.0 | % | 935 | 2.0 | % |
| Total Fixed maturities | 32,914 | 81.0 | % | 33,577 | 81.0 | % | 33,458 | 81.0 | % | 32,840 | 81.0 | % |
| Commercial mortgage loans | 5,412 | 13.0 | % | 5,375 | 13.0 | % | 5,381 | 13.0 | % | 5,490 | 14.0 | % |
| Limited partnership | 1,774 | 4.0 | % | 1,777 | 4.0 | % | 1,813 | 4.0 | % | 1,793 | 4.0 | % |
| Equity securities | 464 | 1.0 | % | 475 | 1.0 | % | 486 | 1.0 | % | 476 | 1.0 | % |
| Total | 40,565 | 100.0 | % | 41,204 | 100.0 | % | 41,138 | 100.0 | % | 40,599 | 100.0 | % |
| NAIC Ratings | ||||||||||||
| Fixed Maturities: | ||||||||||||
| NAIC 1 | 17,016 | 52.0 | % | 17,312 | 52.0 | % | 17,208 | 51.0 | % | 16,619 | 51.0 | % |
| NAIC 2 | 14,662 | 45.0 | % | 14,970 | 45.0 | % | 14,850 | 44.0 | % | 14,699 | 45.0 | % |
| NAIC 3 and below | 1,237 | 4.0 | % | 1,295 | 4.0 | % | 1,400 | 4.0 | % | 1,522 | 5.0 | % |
| Total Fixed maturities | 32,914 | 100.0 | % | 33,577 | 100.0 | % | 33,458 | 100.0 | % | 32,840 | 100.0 | % |
| Commercial Mortgage Loans: | ||||||||||||
| CML 1 | 4,246 | 78.0 | % | 4,220 | 79.0 | % | 4,224 | 78.0 | % | 4,400 | 80.0 | % |
| CML 2 | 1,067 | 20.0 | % | 1,045 | 19.0 | % | 1,030 | 19.0 | % | 966 | 18.0 | % |
| CML 3 and below | 100 | 2.0 | % | 110 | 2.0 | % | 127 | 2.0 | % | 125 | 2.0 | % |
| Total Commercial mortgage loans | 5,412 | 100.0 | % | 5,375 | 100.0 | % | 5,381 | 100.0 | % | 5,490 | 100.0 | % |
| (1) Presented one quarter in arrears based on the timing of our statutory filings. |
| Voya Financial | Page 35 of 43 |
|---|
Alternative Investment Income
| Three Months Ended | Year-to-Date | ||||||
|---|---|---|---|---|---|---|---|
| (in millions USD) | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 3/31/2023 | 3/31/2022 |
| Wealth Solutions | |||||||
| Average alternative investments | 1,659 | 1,614 | 1,650 | 1,634 | 1,534 | 1,659 | 1,534 |
| Alternative investment income | 11 | (5) | (26) | 33 | 89 | 11 | 89 |
| Health Solutions | |||||||
| Average alternative investments | 125 | 160 | 163 | 162 | 170 | 125 | 170 |
| Alternative investment income | 1 | (1) | (3) | 3 | 9 | 1 | 9 |
| Investment Management | |||||||
| Average alternative investments | 318 | 316 | 333 | 347 | 351 | 318 | 351 |
| Alternative investment income | 9 | (2) | (13) | 5 | 11 | 9 | 11 |
| Voya Financial | Page 36 of 43 |
|---|
Alternative Income and Prepayments Above (Below) Long-Term Expectations
| Three Months Ended | Twelve Months Ended | ||||||
|---|---|---|---|---|---|---|---|
| (in millions USD) | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 3/31/2023 | 3/31/2022 |
| Alternative Income Above (Below) Long-Term Expectations (1) | |||||||
| Wealth Solutions | (26) | (41) | (63) | (4) | 55 | (135) | 361 |
| Health Solutions | (2) | (5) | (7) | — | 5 | (14) | 37 |
| Investment Management | 2 | (9) | (20) | (3) | 3 | (30) | 56 |
| Total | (26) | (55) | (90) | (7) | 63 | (179) | 454 |
| Prepayments Above (Below) Long-Term Expectations (1) | |||||||
| Wealth Solutions | (7) | (9) | (7) | (3) | (3) | (26) | 16 |
| Health Solutions | — | — | — | — | — | — | 3 |
| Investment Management | — | — | — | — | — | — | — |
| Total | (7) | (9) | (7) | (3) | (3) | (26) | 19 |
| Alternative Income and Prepayments Above (Below) Long-Term Expectations (1) | |||||||
| Wealth Solutions | (33) | (50) | (70) | (7) | 52 | (161) | 377 |
| Health Solutions | (2) | (5) | (7) | — | 5 | (15) | 39 |
| Investment Management | 2 | (9) | (20) | (3) | 3 | (30) | 56 |
| Total | (34) | (64) | (97) | (10) | 60 | (206) | 472 |
| (1) The amount by which Investment income from alternative investments and prepayment fees exceeds or is less than our long-term expectation. |
Reconciliations
| Voya Financial | Page 38 of 43 |
|---|
Reconciliation of Adjusted Operating Earnings Before Income Taxes and Earnings Per Common Share (Diluted)
| Three Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions except per share in whole dollars) | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | ||||||||||
| Before income taxes | After income taxes (1) | Per share (2) | Before income taxes | After income taxes (1) | Per share (2) | Before income taxes | After income taxes (1) | Per share (2) | Before income taxes | After income taxes (1) | Per share (2) | Before income taxes | After income taxes (1) | Per share (2) | |
| Income (loss) available to Voya Financial, Inc.'s common shareholders | 69 | 0.63 | 190 | 1.78 | 166 | 1.57 | 64 | 0.57 | 54 | 0.46 | |||||
| Plus: Net income (loss) attributable to noncontrolling interests | 46 | 0.42 | (57) | (0.54) | (138) | (1.30) | 75 | 0.68 | 43 | 0.36 | |||||
| Less: Preferred stock dividends | (14) | (0.13) | (4) | (0.04) | (14) | (0.13) | (4) | (0.04) | (14) | (0.12) | |||||
| Income (loss) | 141 | 129 | 1.18 | 83 | 137 | 1.28 | 71 | 42 | 0.40 | 152 | 143 | 1.29 | 122 | 111 | 0.95 |
| Less: | |||||||||||||||
| Net investment gains (losses) | (9) | (7) | (0.06) | (10) | (8) | (0.07) | (9) | (7) | (0.06) | (59) | (47) | (0.42) | (112) | (88) | (0.75) |
| Income (loss) related to businesses exited or to be exited through reinsurance or divestment | (33) | (26) | (0.23) | (34) | (27) | (0.25) | (13) | (11) | (0.10) | (55) | (44) | (0.39) | (36) | (28) | (0.24) |
| Net income (loss) attributable to noncontrolling interests | 46 | 46 | 0.42 | (57) | (57) | (0.54) | (138) | (138) | (1.30) | 75 | 75 | 0.68 | 43 | 43 | 0.36 |
| Dividend payments made to preferred shareholders | 14 | 14 | 0.13 | 4 | 4 | 0.04 | 14 | 14 | 0.13 | 4 | 4 | 0.04 | 14 | 14 | 0.12 |
| Other adjustments | (70) | (56) | (0.51) | (26) | (3) | (0.03) | (37) | (26) | (0.24) | (40) | (34) | (0.31) | (8) | (11) | (0.09) |
| Adjusted operating earnings | 192 | 158 | 1.44 | 206 | 227 | 2.13 | 254 | 210 | 1.97 | 228 | 188 | 1.70 | 221 | 182 | 1.55 |
| Less: | |||||||||||||||
| Alternative investment income and prepayment fees above (below) long-term expectations net of variable and incentive compensation | (34) | (27) | (0.25) | (63) | (50) | (0.47) | (94) | (74) | (0.70) | (8) | (7) | (0.06) | 59 | 47 | 0.40 |
| Other (3) | — | — | — | — | 53 | 0.50 | 57 | 45 | 0.42 | — | — | — | (40) | (31) | (0.27) |
| Adjusted operating earnings excluding notable items | 226 | 185 | 1.69 | 269 | 224 | 2.10 | 291 | 239 | 2.24 | 236 | 195 | 1.76 | 201 | 166 | 1.42 |
| (1) The adjusted operating effective tax rate is based on the actual income tax expense for the current period related to Income (loss), adjusted for estimated taxes on non-operating items and non-operating tax impacts, such as those related to restructuring, changes in a tax valuation allowance and changes to tax law. For non-operating items, we apply a 21% tax rate. | |||||||||||||||
| (2) Per share calculations are based on un-rounded numbers. | |||||||||||||||
| (3) Includes favorable tax adjustments primarily related to foreign tax credits, changes in certain other reserves not expected to recur at the same level, and Group Life Covid-19 impacts. |
| Voya Financial | Page 39 of 43 |
|---|
Reconciliation of Adjusted Operating Revenues
| Three Months Ended | Year-to-Date | ||||||
|---|---|---|---|---|---|---|---|
| (in millions USD) | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 3/31/2023 | 3/31/2022 |
| Total revenues | 1,835 | 1,555 | 1,345 | 1,524 | 1,506 | 1,835 | 1,506 |
| Less: | |||||||
| Net investment gains (losses) | (14) | (17) | (18) | (60) | (120) | (14) | (120) |
| Revenues (losses) related to business exited or to be exited through reinsurance or divestment | 30 | 16 | (30) | (55) | (54) | 30 | (54) |
| Revenues (loss) attributable to noncontrolling interests | 60 | (44) | (130) | 93 | 48 | 60 | 48 |
| Other adjustments | 60 | 54 | 30 | 8 | 28 | 60 | 28 |
| Total adjusted operating revenues | 1,697 | 1,547 | 1,495 | 1,537 | 1,603 | 1,697 | 1,603 |
| Adjusted operating revenues by segment | |||||||
| Wealth Solutions | 684 | 669 | 645 | 709 | 756 | 684 | 756 |
| Health Solutions | 774 | 649 | 645 | 641 | 647 | 774 | 647 |
| Investment Management | 229 | 215 | 192 | 171 | 178 | 229 | 178 |
| Corporate | 11 | 15 | 13 | 17 | 22 | 11 | 22 |
| Total adjusted operating revenues | 1,697 | 1,547 | 1,495 | 1,537 | 1,603 | 1,697 | 1,603 |
| Voya Financial | Page 40 of 43 |
|---|
Wealth Solutions and Health Solutions Reconciliation of Net Revenues
| Page | Three Months Ended | Twelve Months Ended | ||||||
|---|---|---|---|---|---|---|---|---|
| (in millions USD) | Reference | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 3/31/2023 | 3/31/2022 |
| Wealth Solutions | ||||||||
| Adjusted operating revenues | page 9 | 684 | 669 | 645 | 709 | 756 | 2,707 | 3,212 |
| Interest credited and other benefits to contract owners/policyholders | (222) | (224) | (222) | (222) | (218) | (890) | (890) | |
| Net revenue | page 15 | 463 | 445 | 423 | 486 | 538 | 1,817 | 2,322 |
| Less: | ||||||||
| Alternative investment income and prepayment fees above (below) long-term expectations | (33) | (50) | (70) | (7) | 52 | (161) | 377 | |
| Fee income related to divested businesses | — | — | — | — | — | — | 10 | |
| Net revenue excluding notable items | page 29 | 496 | 495 | 493 | 494 | 486 | 1,978 | 1,934 |
| Health Solutions | ||||||||
| Adjusted operating revenues | page 9 | 774 | 649 | 645 | 641 | 647 | 2,709 | 2,445 |
| Interest credited and other benefits to contract owners/policyholders | (467) | (424) | (335) | (443) | (478) | (1,669) | (1,718) | |
| Net revenue | page 19 | 306 | 225 | 310 | 198 | 169 | 1,039 | 728 |
| Less: | ||||||||
| Alternative investment income and prepayment fees above (below) long-term expectations | (2) | (5) | (7) | — | 5 | (15) | 39 | |
| Group Life Covid-19 impacts | — | — | — | — | (40) | — | (117) | |
| Other adjustments to net underwriting gain (loss) and other revenue (1) | — | — | 57 | — | — | 57 | 13 | |
| Net revenue excluding notable items | page 29 | 309 | 230 | 260 | 198 | 204 | 997 | 792 |
| (1) Includes changes in certain legal and other reserves not expected to recur at the same level. |
| Voya Financial | Page 41 of 43 |
|---|
Investment Management and Consolidated Reconciliation of Net Revenues
| Page | Three Months Ended | Twelve Months Ended | ||||||
|---|---|---|---|---|---|---|---|---|
| (in millions USD) | Reference | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 3/31/2023 | 3/31/2022 |
| Investment Management | ||||||||
| Adjusted operating revenues | page 9 | 229 | 215 | 192 | 171 | 178 | 807 | 772 |
| Net revenue | page 22 | 229 | 215 | 192 | 171 | 178 | 807 | 772 |
| Less: | ||||||||
| Alternative investment income and prepayment fees above (below) long-term expectations | 2 | (9) | (20) | (3) | 3 | (30) | 56 | |
| Net revenue excluding notable items | page 29 | 227 | 224 | 212 | 173 | 175 | 836 | 716 |
| Consolidated | ||||||||
| Total Adjusted operating revenues | page 9 | 1,697 | 1,547 | 1,495 | 1,537 | 1,603 | 6,276 | 6,527 |
| Interest credited and other benefits to contract owners/policyholders | (689) | (648) | (557) | (665) | (696) | (2,559) | (2,609) | |
| Corporate Adjusted operating revenues (1) | (11) | (15) | (13) | (17) | (22) | (56) | (98) | |
| Net revenue | pages 15/19/22 | 998 | 885 | 925 | 855 | 885 | 3,663 | 3,822 |
| Less: | ||||||||
| Alternative investment income and prepayment fees above (below) long-term expectations | (34) | (64) | (97) | (10) | 60 | (206) | 472 | |
| Group Life Covid-19 impacts | — | — | — | — | (40) | — | (117) | |
| Fee income related to divested businesses | — | — | — | — | — | — | 10 | |
| Other adjustments | — | — | 57 | — | — | 57 | 13 | |
| Net revenue excluding notable items | page 29 | 1,032 | 949 | 965 | 865 | 865 | 3,811 | 3,442 |
| (1) Includes primarily TSA Revenue. |
| Voya Financial | Page 42 of 43 |
|---|
Reconciliation of Adjusted Operating Earnings Before Income Taxes Excluding Notable Items by Segment
| Page | Three Months Ended | Twelve Months Ended | ||||||
|---|---|---|---|---|---|---|---|---|
| (in millions USD) | Reference | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 3/31/2023 | 3/31/2022 |
| Wealth Solutions Adjusted operating earnings before income taxes | page 9 | 132 | 145 | 128 | 197 | 228 | 602 | 1,077 |
| Less: | ||||||||
| Alternative investment income and prepayment fees above (below) long-term expectations net of variable and incentive compensation | (33) | (50) | (70) | (7) | 52 | (161) | 377 | |
| Other (1)(2) | — | — | — | — | — | — | (13) | |
| Adjusted operating earnings excluding notable items | page 29 | 166 | 195 | 198 | 204 | 176 | 763 | 713 |
| Health Solutions Adjusted operating earnings before income taxes | page 9 | 94 | 78 | 154 | 50 | 21 | 376 | 185 |
| Less: | ||||||||
| Alternative investment income and prepayment fees above (below) long-term expectations net of variable and incentive compensation | (2) | (5) | (7) | — | 5 | (15) | 39 | |
| Group Life Covid-19 impacts | — | — | — | — | (40) | — | (117) | |
| Other (1) | — | — | 57 | — | — | 57 | 13 | |
| Adjusted operating earnings excluding notable items | page 29 | 97 | 83 | 105 | 51 | 56 | 335 | 250 |
| Investment Management Adjusted operating earnings before income taxes, including Allianz noncontrolling interest | page 9 | 42 | 57 | 51 | 40 | 39 | 190 | 227 |
| Less: | ||||||||
| Alternative investment income and prepayment fees above (below) long-term expectations net of variable and incentive compensation | 2 | (7) | (16) | (2) | 2 | (24) | 46 | |
| Adjusted operating earnings excluding notable items | page 29 | 41 | 64 | 67 | 42 | 37 | 212 | 181 |
| Corporate Adjusted operating earnings before income taxes, including Allianz noncontrolling interest | page 9 | (69) | (60) | (66) | (60) | (68) | (255) | (305) |
| Less: | ||||||||
| Other (3) | — | — | — | — | — | — | (50) | |
| Adjusted operating earnings excluding notable items | (69) | (60) | (65) | (60) | (68) | (255) | (255) | |
| Consolidated Adjusted operating earnings before income taxes, including Allianz noncontrolling interest | page 9 | 200 | 219 | 267 | 228 | 221 | 914 | 1,184 |
| Total Notable Items Adjustments | (34) | (63) | (37) | (8) | 20 | (142) | 295 | |
| Consolidated Adjusted operating earnings excluding notable items, including Allianz noncontrolling interest | 234 | 282 | 305 | 236 | 201 | 1,055 | 889 | |
| Less: Earnings (loss) attributable to Allianz noncontrolling interest excluding notable items | 8 | 13 | 13 | — | — | 34 | — | |
| Consolidated Adjusted operating earnings excluding notable items | page 29 | 226 | 269 | 291 | 236 | 201 | 1,022 | 889 |
| (1) Includes changes in certain legal and other reserves not expected to recur at the same level. | ||||||||
| (2) Includes revenue and expenses related to FPC prior to its divestment in June 2021. | ||||||||
| (3) Includes incentive compensation driven by above target performance. | ||||||||
| Voya Financial | Page 43 of 43 | |||||||
| --- | --- |
Reconciliation of Book Value Per Common Share, Excluding AOCI, Leverage Ratio and Adjusted Diluted Shares
| Three Months Ended or As of | Year-to-Date or As of | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in whole dollars) | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 3/31/2023 | 3/31/2022 | |||||||
| Book value per common share, including AOCI | 34.03 | 28.16 | 23.70 | 30.52 | 49.57 | 34.03 | 49.57 | |||||||
| Per share impact of AOCI | 25.92 | 31.43 | 33.98 | 20.89 | 1.57 | 25.92 | 1.57 | |||||||
| Book value per common share, excluding AOCI | 59.95 | 59.59 | 57.69 | 51.41 | 51.14 | 59.95 | 51.14 | |||||||
| Debt to capital ratio | 36.1 | % | 40.0 | % | 43.4 | % | 39.9 | % | 29.8 | % | 36.1 | % | 29.8 | % |
| Capital impact of adding noncontrolling interest | -7.3 | % | -8.4 | % | -10.2 | % | -8.8 | % | -4.7 | % | -7.3 | % | -4.7 | % |
| Impact of adding other financial obligations and treatment of preferred stock (1) | 9.8 | % | 9.9 | % | 10.3 | % | 10.1 | % | 8.5 | % | 9.8 | % | 8.5 | % |
| Capital impact of excluding AOCI | -9.1 | % | -12.0 | % | -13.7 | % | -8.4 | % | -0.6 | % | -9.1 | % | -0.6 | % |
| Financial leverage ratio excluding AOCI | 29.5 | % | 29.5 | % | 29.8 | % | 32.8 | % | 33.0 | % | 29.5 | % | 33.0 | % |
| Reconciliation of shares used in Adjusted operating earnings per common share (Diluted) | ||||||||||||||
| Weighted-average common shares outstanding - Basic | 97.7 | 97.3 | 97.9 | 101.7 | 106.1 | 97.7 | 106.1 | |||||||
| Dilutive effect of warrants | 8.9 | 7.2 | 6.2 | 7.1 | 8.2 | 8.9 | 8.2 | |||||||
| Other dilutive effects (2) | 2.9 | 2.2 | 2.3 | 2.0 | 2.6 | 2.9 | 2.6 | |||||||
| Weighted-average common shares outstanding - Diluted | 109.6 | 106.7 | 106.4 | 110.8 | 117.0 | 109.6 | 117.0 | |||||||
| Dilutive effect of the exercise or issuance of stock-based awards (3) | — | — | — | — | — | — | — | |||||||
| Weighted average common shares outstanding - Adjusted Diluted (3) | 109.6 | 106.7 | 106.4 | 110.8 | 117.0 | 109.6 | 117.0 | |||||||
| (1) Includes operating leases, capital leases, and unfunded pension plan after-tax and the impact of eliminating equity treatment for preferred stock. | ||||||||||||||
| (2) Includes stock-based compensation awards such as restricted stock units (RSU), performance stock units (PSU), or stock options. | ||||||||||||||
| (3) For periods in which there is Net loss available to common shareholders, adjusted operating earnings per common share (EPS) calculation includes additional dilutive shares, as the inclusion of these shares for stock compensation plans would not be anti-dilutive to the adjusted operating EPS calculation. |
Document
| Exhibit 99.3 |
|---|
Quarterly Investor Supplement
December 31, 2022
Recast for Long-Duration Targeted Improvements ("LDTI") Accounting Guidance and Changes to Non-GAAP Definitions (Unaudited)
This report should be read in conjunction with Voya Financial, Inc.'s Annual Report on Form 10-K for the Twelve Months Ended December 31, 2022. Voya Financial's Annual Reports on Form 10-K, and Quarterly Reports on Form 10-Q, can be accessed upon filing at the Securities and Exchange Commission’s website at www.sec.gov, and at our website at investors.voya.com. All information is unaudited.
| Corporate Offices: | Media Contact: | Investor Contact: |
|---|---|---|
| Voya Financial | Christopher Breslin | Michael Katz |
| 230 Park Avenue | 212-309-8941 | 212-309-8999 |
| New York, New York 10169 | Christopher.Breslin@voya.com | IR@voya.com |
| NYSE Ticker: | Web Site: | |
| VOYA | investors.voya.com |
Table of Contents
| Page | Page | ||
|---|---|---|---|
| Consolidated | Investment Information | ||
| Explanatory Note on Non-GAAP Financial Information | 3 - 5 | Portfolio Results GAAP Book Value, Gross Investment Income, and | |
| Key Metrics | 6 | Earned Rate by Asset Class | 34 |
| Consolidated Statements of Operations | 7 | Portfolio Results Statutory Carrying Values by Asset Class and NAIC | |
| Consolidated Adjusted Operating Earnings Before Income Taxes | 8 | Ratings | 35 |
| Adjusted Operating Earnings Before Income Taxes by Segment (QTD) | 9 | Alternative Investment Income | 36 |
| Adjusted Operating Earnings Before Income Taxes by Segment (YTD) | 10 | Alternative Income and Prepayments Above (Below) Long-Term | |
| Consolidated Balance Sheets | 11 | Expectations | 37 |
| DAC/VOBA Segment Trends | 12 | Reconciliations | |
| Consolidated Capital Structure | 13 | Reconciliation of Adjusted Operating Earnings Before Income Taxes and | |
| Consolidated Assets Under Management, Assets Under Administration | Earnings Per Common Share (Diluted) (QTD) | 39 | |
| and Advisement | 14 | Reconciliation of Adjusted Operating Earnings Before Income Taxes and | |
| Wealth Solutions | Earnings Per Common Share (Diluted) (YTD) | 40 | |
| Sources of Adjusted Operating Earnings Before Income Taxes and | Reconciliation of Adjusted Operating Revenues | 41 | |
| Key Metrics | 16 | Reconciliation of Net Revenues by Segment | 42 - 43 |
| Client Assets Rollforward by Product Group | 17 - 18 | Reconciliation of Adjusted Operating Earnings Before Income Taxes | |
| Health Solutions | Excluding Notable Items by Segment | 44 | |
| Sources of Adjusted Operating Earnings Before Income Taxes | 20 | Reconciliation of Book Value Per Common Share, Excluding AOCI, | |
| Key Metrics | 21 | Leverage Ratio, and Adjusted Diluted Shares | 45 |
| Investment Management | Reconciliation of Recast Adjusted Operating Earnings Before Income | ||
| Sources of Adjusted Operating Earnings Before Income Taxes | 23 | Taxes and Earnings Per Common Share (Diluted) (QTD) | 46 |
| Analysis of AUM and AUA | 24 | Reconciliation of Recast Adjusted Operating Earnings Before Income | |
| Account Value Rollforward by Source | 25 | Taxes and Earnings Per Common Share (Diluted) (YTD) | 47 |
| Account Value by Asset Type | 26 | ||
| Corporate | |||
| Adjusted Operating Earnings Before Income Taxes | 28 | ||
| Net Revenue, Adjusted Operating Margin, Administrative | |||
| Expenses, and Adjusted Operating Return on Capital | |||
| Net Revenue and Adjusted Operating Margin | 30 | ||
| Administrative Expenses | 31 | ||
| Adjusted Operating Return on Allocated Capital | 32 |
| Voya Financial | Page 3 of 47 |
|---|
Explanatory Note on Non-GAAP Financial Information
Effective January 1, 2023, we adopted Targeted Improvements to the Accounting for Long-Duration Contracts ("LDTI"). This supplement recasts previously reported financial information based on our implementation of LDTI and is currently unaudited. For further information, refer to our Quarterly Report on Form 10-Q for the first quarter of 2023 which will be filed with the SEC on or before May 10, 2023.
This supplement also recasts previously reported financial information for updates to our definition of Adjusted Operating Earnings Before Income Taxes in Corporate. Effective with the first quarter of 2023, we are excluding from Adjusted Operating Earnings Before Income Taxes the amortization of acquisition-related intangible assets. In addition, we are excluding the expected return on plan assets net of interest costs associated with our qualified defined benefit pension plan, which are influenced by economic and market conditions and not indicative of normal operations. Adjusted Operating Earnings Before Income Taxes in Corporate still includes the service costs related to our qualified defined benefit pension plan and service and interest costs related to our non-qualified defined benefit pension plans.
Refer to the "Reconciliations" section of this document for a reconciliation of the recast financial information in this supplement to previously reported financial information.
Adjusted Operating Earnings Before Income Taxes
We believe that Adjusted operating earnings before income taxes provides a meaningful measure of our business and segment performance and enhances the understanding of our financial results by focusing on the operating performance and trends of the underlying business segments and excluding items that tend to be highly variable from period to period based on capital market conditions or other factors. We use the same accounting policies and procedures to measure segment Adjusted operating earnings before income taxes as we do for the directly comparable U.S. GAAP measure, which is Income (loss) from continuing operations before income taxes.
Adjusted operating earnings before income taxes does not replace Income (loss) from continuing operations before income taxes as a measure of our consolidated results of operations. Therefore, we believe that it is useful to evaluate both Income (loss) from continuing operations before income taxes and Adjusted operating earnings before income taxes when reviewing our financial and operating performance. Each segment’s Adjusted operating earnings before income taxes is calculated by adjusting Income (loss) from continuing operations before income taxes for the following items:
•Net investment gains (losses), which are significantly influenced by economic and market conditions, including interest rates and credit spreads, and are not indicative of normal operations. Net investment gains (losses) include gains (losses) on the sale of securities, impairments, changes in the fair value of investments using the FVO unrelated to the implied loan-backed security income recognition for certain mortgage-backed obligations, and changes in the fair value of derivative instruments, excluding gains (losses) associated with swap settlements and accrued interest. It also includes changes in the fair value of derivatives related to managed custody guarantees, net of related reserve increases (decreases), less the estimated cost of these benefits, changes in nonperformance spread, and changes in market risk benefits;
•Income (loss) related to businesses exited or to be exited through reinsurance or divestment, which includes gains and (losses) associated with transactions to exit blocks of business within continuing operations (including net investment gains (losses) on securities sold and expenses directly related to these transactions), and residual run-off activity (including an insignificant number of Individual Life, and non-Wealth Solutions annuities policies that were not part of the divested businesses). Excluding this activity, which also includes amortization of intangible assets related to businesses exited or to be exited, better reveals trends in our core business and more closely aligns Adjusted operating earnings before income taxes with how we manage our segments;
•Income (loss) attributable to noncontrolling interests, which represents the interest of shareholders, other than those of Voya Financial, Inc., in the gains and (losses) of consolidated entities, such as Allianz SE's ("Allianz") stake in the results of VIM Holdings LLC (referred to as redeemable noncontrolling interest or Allianz noncontrolling interest) or the attribution of results from consolidated VIEs or VOEs to which we are not economically entitled;
•Dividend payments made to preferred shareholders are included as reductions to reflect the Adjusted operating earnings before income taxes that are available to common shareholders;
•Other adjustments may include the following items:
•Income (loss) related to early extinguishment of debt, which includes losses incurred as a result of transactions where we repurchase outstanding principal amounts of debt. These losses are excluded from Adjusted operating earnings before income taxes since the outcome of decisions to restructure debt are not indicative of normal operations;
•Impairment of goodwill, value of management contract rights and value of customer relationships acquired, which includes losses as a result of impairment analysis; these represent losses related to infrequent events and do not reflect normal, cash-settled expenses;
•Amortization of value of management contract rights, value of customer relationships acquired, and other acquisition-related intangible assets as well as contingent consideration fair value adjustments incurred in connection with certain acquisitions which are not indicative of current Operating expense fundamentals;
•Expected return on plan assets net of interest costs associated with our qualified defined benefit pension plan and immediate recognition of net actuarial gains (losses) related to all of our pension and other postretirement benefit obligations and gains (losses) from plan amendments and curtailments, which includes actuarial gains and (losses) as a result of differences between actual and expected experience on pension plan assets or projected benefit obligation during a given period. These amounts do not reflect cash-settled expenses, and are not indicative of current Operating expense fundamentals; and
| Voya Financial | Page 4 of 47 |
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Explanatory Note on Non-GAAP Financial Information
•Other items not indicative of normal operations or performance of our segments or may be related to events such as capital or organizational restructurings undertaken to achieve long-term economic benefits, including certain costs related to debt and equity offerings, acquisition / merger integration expenses, severance and other third-party expenses associated with such activities, and expenses attributable to vacant real estate. These items vary widely in timing, scope and frequency between periods as well as between companies to which we are compared. Accordingly, we adjust for these items as we believe that these items distort the ability to make a meaningful evaluation of the current and future performance of our segments.
The most directly comparable U.S. GAAP measure to Adjusted operating earnings before income taxes is Income (loss) from continuing operations before income taxes. For a reconciliation of Adjusted operating earnings before income taxes to Income (loss) from continuing operations before income taxes, refer to the "Reconciliations" section in this document.
Adjusted Operating Revenues
Adjusted operating revenues is a measure of our segment revenues and a non-GAAP financial measure. Each segment's Adjusted operating revenues are calculated by adjusting Total revenues for the following items:
•Net investment gains (losses), which are significantly influenced by economic and market conditions, including interest rates and credit spreads, and are not indicative of normal operations. Net investment gains (losses) include gains (losses) on the sale of securities, impairments, changes in the fair value of investments using the FVO unrelated to the implied loan-backed security income recognition for certain mortgage-backed obligations, and changes in the fair value of derivative instruments, excluding gains (losses) associated with swap settlements and accrued interest. It also includes changes in the fair value of derivatives related to managed custody guarantees, net of related reserve increases (decreases), less the estimated cost of these benefits, and changes in nonperformance spread;
•Revenues related to businesses exited or to be exited through reinsurance or divestment, which include revenues associated with transactions to exit blocks of business within continuing operations (including net investment gains (losses) on securities sold related to these transactions), and residual run-off activity (including an insignificant number of Individual Life and non-Wealth Solutions annuities policies that were not part of the divested businesses). Excluding this activity better reveals trends in our core business and more closely aligns Adjusted operating revenues with how we manage our segments;
•Revenues attributable to noncontrolling interests, which represent the interests of shareholders, other than those of Voya Financial, Inc., in consolidated entities. Revenues attributable to noncontrolling interests represent such shareholders' interests in the revenues of those entities, or the attribution of results from consolidated VIEs or VOEs to which we are not economically entitled; and
•Other adjustments primarily reflect fee income earned by our broker-dealers for sales of non-proprietary products, which are reflected net of commission expense in our segments’ operating revenues, other items where the income is passed on to third parties and the elimination of intercompany investment expenses included in Adjusted operating revenues.
The most directly comparable U.S. GAAP measure to Adjusted operating revenues is Total revenues. For a reconciliation of Adjusted operating revenues to Total revenues, refer to the "Reconciliations" section of this document.
Sources of Earnings
We analyze our segment performance based on the sources of earnings. We believe this supplemental information is useful in order to gain a better understanding of our Adjusted operating earnings before income taxes for the following reasons: (1) we analyze our business using this information and (2) this presentation can be helpful for investors to understand the main drivers of Adjusted operating earnings before income taxes. The sources of earnings are defined as such:
•Investment spread and other investment income consists of net investment income and net gains (losses) associated with swap settlements and accrued interest, less interest credited to policyholder reserves.
•Fee based margin consists primarily of fees earned on assets under management ("AUM"), assets under administration and advisement ("AUA"), and transaction based recordkeeping fees.
•Net underwriting gain (loss) and other revenue contains the following: the difference between fees charged for insurance risks and incurred benefits, including mortality, morbidity, surrender results, and contractual charges.
•Administrative expenses are general expenses, net of amounts capitalized as acquisition expenses and exclude commission expenses.
•Net commissions are commissions paid that are not deferred and thus recorded directly to expense.
•DAC/VOBA and other intangibles amortization.
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Explanatory Note on Non-GAAP Financial Information
Net Revenue and Adjusted Operating Margin
• Adjusted operating margin is defined as adjusted operating earnings before income taxes divided by net revenue.
• Net revenue is the sum of investment spread and other investment income, fee based margin, and net underwriting gain (loss). Please see the “Reconciliations” section of this document for a
reconciliation of net revenue to adjusted operating revenue for each of our segments.
• We report net revenue and adjusted operating margin for each of our segments, since they provide a meaningful measure for the two primary drivers for adjusted operating earnings – revenue growth and margin expansion.
• We also report net revenue and adjusted operating margin excluding notable items, such as alternative investment income above or below our long-term expectations. Please see the “Reconciliations” section of this document for a reconciliation of net revenue to net revenues excluding notable items and of adjusted operating earnings before income taxes to adjusted operating earnings excluding notable items.
• We report net revenue and adjusted operating margin excluding notable items since it provides the main drivers for adjusted operating earnings before income taxes excluding the effects of items that are not expected to recur at the same level.
Other Information
Financial information, unless otherwise noted, is rounded to millions, therefore may not sum to its corresponding total.
| Voya Financial | Page 6 of 47 |
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Key Metrics
| Three Months Ended or As of | Year-to-Date or As of | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions USD, unless otherwise indicated) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 | |||||||
| Net income (loss) available to Voya Financial, Inc.'s common shareholders | 190 | 166 | 64 | 54 | 382 | 474 | 2,334 | |||||||
| Per common share (basic) | 1.95 | 1.70 | 0.62 | 0.51 | 3.47 | 4.70 | 20.02 | |||||||
| Per common share (diluted) | 1.78 | 1.57 | 0.57 | 0.46 | 3.18 | 4.30 | 18.56 | |||||||
| Adjusted operating earnings: (1) | ||||||||||||||
| Before income taxes | 206 | 254 | 228 | 221 | 265 | 908 | 1,225 | |||||||
| After income taxes | 227 | 210 | 188 | 182 | 218 | 807 | 1,000 | |||||||
| Effective tax rate | -10.2 | % | 17.5 | % | 17.2 | % | 17.6 | % | 17.8 | % | 11.2 | % | 18.4 | % |
| Per common share (Adjusted diluted) | 2.13 | 1.97 | 1.70 | 1.55 | 1.81 | 7.32 | 7.95 | |||||||
| Shareholder's equity: | ||||||||||||||
| Total Voya Financial, Inc. Common Shareholders' Equity | 2,737 | 2,304 | 2,988 | 5,066 | 7,488 | 2,737 | 7,488 | |||||||
| Total Voya Financial, Inc. Common Shareholders' Equity - Excluding AOCI (1) | 5,792 | 5,607 | 5,033 | 5,226 | 5,681 | 5,792 | 5,681 | |||||||
| Book value per common share (including AOCI) | 28.16 | 23.70 | 30.52 | 49.57 | 69.46 | 28.16 | 69.46 | |||||||
| Book value per common share (excluding AOCI) (1) | 59.59 | 57.69 | 51.41 | 51.14 | 52.70 | 59.59 | 52.70 | |||||||
| Leverage Ratios: | ||||||||||||||
| Debt-to-Capital | 40.0 | % | 43.4 | % | 39.9 | % | 29.8 | % | 24.3 | % | 40.0 | % | 24.3 | % |
| Financial Leverage - excluding AOCI (1) | 29.5 | % | 29.8 | % | 32.8 | % | 33.0 | % | 32.6 | % | 29.5 | % | 32.6 | % |
| Shares: | ||||||||||||||
| Weighted-average common shares outstanding | ||||||||||||||
| Basic | 97 | 98 | 102 | 106 | 110 | 101 | 117 | |||||||
| Dilutive effect of warrants | 7 | 6 | 7 | 8 | 8 | 7 | 7 | |||||||
| Other dilutive effects (2) | 2 | 2 | 2 | 3 | 3 | 2 | 2 | |||||||
| Diluted | 107 | 106 | 111 | 117 | 120 | 110 | 126 | |||||||
| Adjusted Diluted (1) | 107 | 106 | 111 | 117 | 120 | 110 | 126 | |||||||
| Ending shares outstanding | 97 | 97 | 98 | 102 | 108 | 97 | 108 | |||||||
| Returned to Common Shareholders: | ||||||||||||||
| Repurchase of common shares, excluding commissions | — | 50 | 255 | 445 | 310 | 750 | 1,143 | |||||||
| Dividends to common shareholders | 19 | 20 | 20 | 21 | 21 | 80 | 80 | |||||||
| Total cash returned to common shareholders | 19 | 70 | 275 | 466 | 331 | 830 | 1,223 | |||||||
| (1) This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer to the “Explanatory Note on Non-GAAP Financial Information” beginning on page 3 of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Reconciliations” section beginning on page 38 of this document. | ||||||||||||||
| (2) Includes stock-based compensation awards such as restricted stock units (RSU), performance stock units (PSU), or stock options. |
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Consolidated Statements of Operations
| Three Months Ended | Year-to-Date | ||||||
|---|---|---|---|---|---|---|---|
| (in millions USD) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 |
| Revenues (1) | |||||||
| Net investment income | 548 | 522 | 581 | 630 | 673 | 2,281 | 2,774 |
| Fee income | 451 | 445 | 413 | 433 | 448 | 1,742 | 1,813 |
| Premiums | 612 | 606 | 597 | 608 | 544 | 2,423 | (3,388) |
| Net gains (losses) | (47) | (125) | (226) | (288) | (200) | (686) | 1,415 |
| Other revenues | 31 | 33 | 44 | 40 | 49 | 148 | 579 |
| Income (loss) related to consolidated investment entities | (40) | (136) | 115 | 83 | 142 | 22 | 981 |
| Total revenues | 1,555 | 1,345 | 1,524 | 1,506 | 1,656 | 5,930 | 4,174 |
| Benefits and expenses (1) | |||||||
| Interest credited and other benefits to contract owners/policyholders | (693) | (537) | (654) | (644) | (611) | (2,528) | 2,188 |
| Operating expenses | (673) | (632) | (605) | (632) | (636) | (2,542) | (2,586) |
| Net amortization of DAC/VOBA | (56) | (60) | (62) | (62) | (64) | (240) | (456) |
| Interest expense | (30) | (31) | (33) | (40) | (59) | (134) | (186) |
| Operating expenses related to consolidated investment entities | (20) | (14) | (18) | (6) | (13) | (58) | (49) |
| Total benefits and expenses | (1,472) | (1,274) | (1,372) | (1,384) | (1,383) | (5,502) | (1,089) |
| Income (loss) from continuing operations before income taxes | 83 | 71 | 152 | 122 | 273 | 428 | 3,085 |
| Income tax expense (benefit) | (54) | 29 | 9 | 11 | (208) | (5) | (34) |
| Income (loss) from continuing operations | 137 | 42 | 143 | 111 | 481 | 433 | 3,119 |
| Income (loss) from discontinued operations, net of tax | — | — | — | — | 5 | — | 12 |
| Net income (loss) | 137 | 42 | 143 | 111 | 486 | 433 | 3,131 |
| Less: Net income (loss) attributable to noncontrolling interest and redeemable noncontrolling interest | (57) | (138) | 75 | 43 | 100 | (77) | 761 |
| Net income (loss) available to Voya Financial, Inc. | 194 | 180 | 68 | 68 | 386 | 510 | 2,370 |
| Less: Preferred stock dividends | 4 | 14 | 4 | 14 | 4 | 36 | 36 |
| Net income (loss) available to Voya Financial, Inc.'s common shareholders | 190 | 166 | 64 | 54 | 382 | 474 | 2,334 |
| (1) Year-to-Date 2021 results include impacts related to the Individual Life and the Non-Wealth Solution Annuities businesses that were ceded at the close of the Individual Life Transaction on January 4, 2021: Premiums and Interest credited and other benefits include the FAS 60 reserves that were ceded at closing; Net gains (losses), Interest credited and other benefits, and Net amortization of DAC/VOBA include the investment gains and related intangible amortization and charges due to the transfer of assets to a comfort trust at closing. |
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Consolidated Adjusted Operating Earnings Before Income Taxes
| Three Months Ended | Year-to-Date | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions USD) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 | |||||||||
| Consolidated Adjusted Operating Earnings Before Income Taxes | ||||||||||||||||
| Adjusted operating revenues | ||||||||||||||||
| Net investment income and net gains (losses) | 460 | 415 | 488 | 537 | 572 | 1,901 | 2,387 | |||||||||
| Fee income | 455 | 451 | 418 | 440 | 467 | 1,765 | 1,791 | |||||||||
| Premiums | 601 | 598 | 588 | 591 | 539 | 2,378 | 2,166 | |||||||||
| Other revenue | 31 | 30 | 43 | 35 | 41 | 139 | 168 | |||||||||
| Adjusted operating revenues (1) | 1,547 | 1,495 | 1,537 | 1,603 | 1,618 | 6,183 | 6,513 | |||||||||
| Adjusted operating benefits and expenses | ||||||||||||||||
| Interest credited and other benefits to contract owners/policyholders | (648) | (557) | (665) | (696) | (652) | (2,566) | (2,565) | |||||||||
| Operating expenses | (614) | (590) | (574) | (605) | (627) | (2,383) | (2,404) | |||||||||
| Net amortization of DAC/VOBA | (30) | (32) | (30) | (30) | (30) | (122) | (119) | |||||||||
| Interest expense (2) | (37) | (49) | (40) | (52) | (44) | (177) | (201) | |||||||||
| Adjusted operating benefits and expenses | (1,328) | (1,228) | (1,309) | (1,383) | (1,353) | (5,248) | (5,289) | |||||||||
| Adjusted operating earnings before income taxes, including Allianz noncontrolling interest (1) | 219 | 267 | 228 | 221 | 265 | 934 | 1,225 | |||||||||
| Less: Earnings (loss) attributable to Allianz noncontrolling interest | 13 | 13 | — | — | — | 26 | — | |||||||||
| Adjusted operating earnings before income taxes (1) | 206 | 254 | 228 | 221 | 265 | 908 | 1,225 | Adjusted Operating Revenues and Adjusted Operating Earnings Before Income Taxes by Segment | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | |||||||||
| Adjusted operating revenues | ||||||||||||||||
| Wealth Solutions | 669 | 645 | 709 | 756 | 792 | 2,778 | 3,236 | |||||||||
| Health Solutions | 649 | 645 | 641 | 647 | 598 | 2,582 | 2,394 | |||||||||
| Investment Management | 215 | 192 | 171 | 178 | 201 | 756 | 783 | |||||||||
| Corporate | 15 | 13 | 17 | 22 | 27 | 67 | 100 | |||||||||
| Adjusted operating revenues (1) | 1,547 | 1,495 | 1,537 | 1,603 | 1,618 | 6,183 | 6,513 | |||||||||
| Adjusted operating earnings before income taxes | ||||||||||||||||
| Wealth Solutions | 145 | 128 | 197 | 228 | 245 | 697 | 1,106 | |||||||||
| Health Solutions | 78 | 154 | 50 | 21 | 31 | 304 | 204 | |||||||||
| Investment Management | 57 | 51 | 40 | 39 | 59 | 186 | 239 | |||||||||
| Corporate | (60) | (66) | (60) | (68) | (70) | (253) | (325) | |||||||||
| Adjusted operating earnings before income taxes, including Allianz noncontrolling interest (1) | 219 | 267 | 228 | 221 | 265 | 934 | 1,225 | |||||||||
| Less: Earnings (loss) attributable to Allianz noncontrolling interest | 13 | 13 | — | — | — | 26 | — | |||||||||
| Adjusted operating earnings before income taxes (1) | 206 | 254 | 228 | 221 | 265 | 908 | 1,225 | |||||||||
| (1) This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer to the “Explanatory Note on Non-GAAP Financial Information” beginning on page 3 of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Reconciliations” section beginning on page 38 of this document. | ||||||||||||||||
| (2) Includes dividend payments made to preferred shareholders. |
| Voya Financial | Page 9 of 47 |
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Adjusted Operating Earnings Before Income Taxes by Segment
| Three Months Ended December 31, 2022 | |||||
|---|---|---|---|---|---|
| (in millions USD) | Wealth Solutions | Health Solutions | Investment Management | Corporate | Consolidated |
| Adjusted operating revenues | |||||
| Net investment income and net gains (losses) | 423 | 31 | (1) | 7 | 460 |
| Fee income | 228 | 18 | 209 | — | 455 |
| Premiums | — | 601 | — | — | 601 |
| Other revenue | 18 | (1) | 6 | 8 | 31 |
| Adjusted operating revenues (1) | 669 | 649 | 215 | 15 | 1,547 |
| Adjusted operating benefits and expenses | |||||
| Interest credited and other benefits to contract owners/policyholders | (224) | (424) | — | — | (648) |
| Operating expenses | (278) | (140) | (158) | (38) | (614) |
| Net amortization of DAC/VOBA | (23) | (7) | — | — | (30) |
| Interest expense (2) | — | — | — | (37) | (37) |
| Adjusted operating benefits and expenses | (524) | (571) | (158) | (75) | (1,328) |
| Adjusted operating earnings before income taxes, including Allianz noncontrolling interest (1) | 145 | 78 | 57 | (60) | 219 |
| Less: Earnings (loss) attributable to Allianz noncontrolling interest | — | — | 14 | (1) | 13 |
| Adjusted operating earnings before income taxes (1) | 145 | 78 | 42 | (59) | 206 |
| Three Months Ended December 31, 2021 | |||||
| Wealth Solutions | Health Solutions | Investment Management | Corporate | Consolidated | |
| Adjusted operating revenues | |||||
| Net investment income and net gains (losses) | 509 | 42 | 20 | 1 | 572 |
| Fee income | 270 | 19 | 178 | — | 467 |
| Premiums | — | 539 | — | — | 539 |
| Other revenue | 13 | (2) | 3 | 26 | 41 |
| Adjusted operating revenues (1) | 792 | 598 | 201 | 27 | 1,618 |
| Adjusted operating benefits and expenses | |||||
| Interest credited and other benefits to contract owners/policyholders | (224) | (428) | — | — | (652) |
| Operating expenses | (298) | (133) | (142) | (53) | (627) |
| Net amortization of DAC/VOBA | (24) | (6) | — | — | (30) |
| Interest expense (2) | — | — | — | (44) | (44) |
| Adjusted operating benefits and expenses | (546) | (567) | (142) | (97) | (1,353) |
| Adjusted operating earnings before income taxes, including Allianz noncontrolling interest (1) | 245 | 31 | 59 | (70) | 265 |
| Less: Earnings (loss) attributable to Allianz noncontrolling interest | — | — | — | — | — |
| Adjusted operating earnings before income taxes (1) | 245 | 31 | 59 | (70) | 265 |
| (1) This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer to the “Explanatory Note on Non-GAAP Financial Information” beginning on page 3 of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Reconciliations” section beginning on page 38 of this document. | |||||
| (2) Includes dividend payments made to preferred shareholders. |
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Adjusted Operating Earnings Before Income Taxes by Segment
| Twelve Months Ended December 31, 2022 | |||||
|---|---|---|---|---|---|
| (in millions USD) | Wealth Solutions | Health Solutions | Investment Management | Corporate | Consolidated |
| Adjusted operating revenues | |||||
| Net investment income and net gains (losses) | 1,756 | 134 | 3 | 8 | 1,901 |
| Fee income | 953 | 76 | 736 | — | 1,765 |
| Premiums | — | 2,378 | — | — | 2,378 |
| Other revenue | 70 | (6) | 17 | 59 | 139 |
| Adjusted operating revenues (1) | 2,778 | 2,582 | 756 | 67 | 6,183 |
| Adjusted operating benefits and expenses | |||||
| Interest credited and other benefits to contract owners/policyholders | (886) | (1,680) | — | — | (2,566) |
| Operating expenses | (1,101) | (569) | (570) | (142) | (2,383) |
| Net amortization of DAC/VOBA | (93) | (29) | — | — | (122) |
| Interest expense (2) | — | — | — | (177) | (177) |
| Adjusted operating benefits and expenses | (2,081) | (2,278) | (570) | (319) | (5,248) |
| Adjusted operating earnings before income taxes, including Allianz noncontrolling interest (1) | 697 | 304 | 186 | (253) | 934 |
| Less: Earnings (loss) attributable to Allianz noncontrolling interest | — | — | 27 | (1) | 26 |
| Adjusted operating earnings before income taxes (1) | 697 | 304 | 158 | (251) | 908 |
| Twelve Months Ended December 31, 2021 | |||||
| Wealth Solutions | Health Solutions | Investment Management | Corporate | Consolidated | |
| Adjusted operating revenues | |||||
| Net investment income and net gains (losses) | 2,114 | 165 | 103 | 4 | 2,387 |
| Fee income | 1,056 | 69 | 667 | — | 1,791 |
| Premiums | — | 2,166 | — | — | 2,166 |
| Other revenue | 66 | (6) | 13 | 96 | 168 |
| Adjusted operating revenues (1) | 3,236 | 2,394 | 783 | 100 | 6,513 |
| Adjusted operating benefits and expenses | |||||
| Interest credited and other benefits to contract owners/policyholders | (891) | (1,674) | — | — | (2,565) |
| Operating expenses | (1,144) | (492) | (544) | (224) | (2,404) |
| Net amortization of DAC/VOBA | (95) | (24) | — | — | (119) |
| Interest expense (2) | — | — | — | (201) | (201) |
| Adjusted operating benefits and expenses | (2,130) | (2,190) | (544) | (425) | (5,289) |
| Adjusted operating earnings before income taxes, including Allianz noncontrolling interest (1) | 1,106 | 204 | 239 | (325) | 1,225 |
| Less: Earnings (loss) attributable to Allianz noncontrolling interest | — | — | — | — | — |
| Adjusted operating earnings before income taxes (1) | 1,106 | 204 | 239 | (325) | 1,225 |
| (1) This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer to the “Explanatory Note on Non-GAAP Financial Information” beginning on page 3 of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Reconciliations” section beginning on page 38 of this document. | |||||
| (2) Includes dividend payments made to preferred shareholders. |
| Voya Financial | Page 11 of 47 |
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Consolidated Balance Sheets
| Balances as of | |||||
|---|---|---|---|---|---|
| (in millions USD) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 |
| Assets | |||||
| Total investments | 39,110 | 39,519 | 40,913 | 42,950 | 45,581 |
| Cash and cash equivalents | 919 | 840 | 954 | 1,011 | 1,402 |
| Assets held in separate accounts | 80,174 | 75,980 | 80,017 | 93,108 | 100,433 |
| Premium receivable and reinsurance recoverable, net | 12,426 | 12,559 | 12,441 | 12,980 | 13,724 |
| Short term investments under securities loan agreement and accrued investment income | 1,604 | 1,623 | 1,536 | 1,507 | 1,536 |
| Deferred policy acquisition costs, Value of business acquired | 2,363 | 2,389 | 2,422 | 2,450 | 2,486 |
| Current and deferred income taxes | 2,228 | 2,245 | 2,040 | 1,544 | 1,028 |
| Other assets (1) | 3,578 | 3,532 | 2,608 | 2,748 | 2,570 |
| Assets related to consolidated investment entities | 4,204 | 4,195 | 4,165 | 3,933 | 3,779 |
| Total Assets | 146,606 | 142,882 | 147,096 | 162,231 | 172,539 |
| Liabilities | |||||
| Future policy benefits and contract owner account balances | 52,174 | 53,039 | 53,168 | 53,230 | 53,691 |
| Liabilities related to separate accounts | 80,174 | 75,980 | 80,017 | 93,108 | 100,433 |
| Payables under securities loan agreements, including collateral held | 1,302 | 1,378 | 1,220 | 1,124 | 1,183 |
| Short-term debt | 141 | 141 | 1 | 1 | 1 |
| Long-term debt | 2,094 | 2,094 | 2,385 | 2,406 | 2,595 |
| Other liabilities (2) | 3,290 | 3,270 | 2,854 | 3,076 | 3,075 |
| Liabilities related to consolidated investment entities | 2,434 | 2,319 | 2,154 | 2,102 | 1,893 |
| Total Liabilities | 141,609 | 138,221 | 141,799 | 155,047 | 162,871 |
| Mezzanine Equity | |||||
| Allianz noncontrolling interest | 166 | 155 | — | — | — |
| Shareholders' Equity | |||||
| Preferred stock | — | — | — | — | — |
| Common stock | 1 | 1 | 1 | 1 | 1 |
| Treasury stock | (39) | (873) | (821) | (565) | (80) |
| Additional paid-in capital | 6,643 | 7,945 | 7,500 | 7,504 | 7,542 |
| Retained earnings (deficit) | (201) | (854) | (1,035) | (1,102) | (1,170) |
| Total Voya Financial, Inc. Shareholders' Equity - Excluding AOCI | 6,404 | 6,219 | 5,645 | 5,838 | 6,293 |
| Accumulated other comprehensive income | (3,055) | (3,303) | (2,045) | (160) | 1,807 |
| Total Voya Financial, Inc. Shareholders' Equity | 3,349 | 2,916 | 3,600 | 5,678 | 8,100 |
| Noncontrolling interest | 1,482 | 1,590 | 1,697 | 1,506 | 1,568 |
| Total Shareholders' Equity | 4,831 | 4,506 | 5,297 | 7,184 | 9,668 |
| Total Liabilities, Mezzanine Equity and Shareholders' Equity | 146,606 | 142,882 | 147,096 | 162,231 | 172,539 |
| (1) Includes Other assets, Goodwill, and Other intangibles, net. | |||||
| (2) Includes Other liabilities, and Derivatives. |
| Voya Financial | Page 12 of 47 |
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DAC/VOBA Segment Trends
| Three Months Ended | Year-to-Date | ||||||
|---|---|---|---|---|---|---|---|
| (in millions USD) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 |
| Wealth Solutions | |||||||
| Balance as of Beginning-of-Period | 1,095 | 1,103 | 1,111 | 1,118 | 1,125 | 1,118 | 1,146 |
| Deferrals of commissions and expenses | 16 | 15 | 16 | 17 | 17 | 64 | 67 |
| Amortization | (23) | (23) | (24) | (24) | (24) | (93) | (95) |
| Balance as of End-of-Period | 1,088 | 1,095 | 1,103 | 1,111 | 1,118 | 1,088 | 1,118 |
| Deferred Sales Inducements as of End-of-Period | 24 | 23 | 23 | 23 | 23 | 24 | 23 |
| Health Solutions | |||||||
| Balance as of Beginning-of-Period | 182 | 178 | 168 | 164 | 161 | 164 | 149 |
| Deferrals of commissions and expenses | 15 | 14 | 17 | 10 | 9 | 55 | 39 |
| Amortization | (7) | (9) | (7) | (6) | (6) | (29) | (24) |
| Balance as of End-of-Period | 190 | 182 | 178 | 168 | 164 | 190 | 164 |
| Total | |||||||
| Balance as of Beginning-of-Period | 1,278 | 1,281 | 1,279 | 1,282 | 1,286 | 1,282 | 1,296 |
| Deferrals of commissions and expenses | 31 | 29 | 33 | 27 | 26 | 119 | 106 |
| Amortization | (30) | (32) | (30) | (30) | (30) | (122) | (119) |
| Balance as of End-of-Period, excluding businesses exited through reinsurance or divestment | 1,279 | 1,278 | 1,281 | 1,279 | 1,282 | 1,279 | 1,282 |
| Balance as of End-of-Period, businesses exited through reinsurance or divestment (1) | 1,084 | 1,111 | 1,141 | 1,171 | 1,204 | 1,084 | 1,204 |
| Balance as of End-of-Period, including businesses exited through reinsurance or divestment | 2,363 | 2,389 | 2,422 | 2,450 | 2,486 | 2,363 | 2,486 |
| (1) Includes DAC and VOBA related to businesses ceded through reinsurance, and an insignificant number of Individual Life and non-Wealth Solutions annuities policies that were not part of the divested businesses. |
| Voya Financial | Page 13 of 47 |
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Consolidated Capital Structure
| Balances as of | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (in millions USD) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | |||||
| Financial Debt | ||||||||||
| Senior bonds | 1,496 | 1,495 | 1,495 | 1,495 | 1,495 | |||||
| Subordinated bonds | 737 | 737 | 888 | 909 | 1,098 | |||||
| Other debt | 2 | 3 | 3 | 3 | 3 | |||||
| Total Financial Debt | 2,235 | 2,235 | 2,386 | 2,407 | 2,596 | |||||
| Other financial obligations (1) | 265 | 269 | 282 | 301 | 300 | |||||
| Total Financial Obligations | 2,500 | 2,504 | 2,668 | 2,708 | 2,896 | |||||
| Mezzanine Equity | ||||||||||
| Allianz noncontrolling interest | 166 | 155 | — | — | — | |||||
| Equity | ||||||||||
| Preferred equity (2) | 612 | 612 | 612 | 612 | 612 | |||||
| Common equity (Excluding AOCI) | 5,792 | 5,607 | 5,033 | 5,226 | 5,681 | |||||
| Total Equity (Excluding AOCI) (3) | 6,404 | 6,219 | 5,645 | 5,838 | 6,293 | |||||
| Accumulated other comprehensive income (AOCI) | (3,055) | (3,303) | (2,045) | (160) | 1,807 | |||||
| Total Voya Financial, Inc. Shareholders' Equity | 3,349 | 2,916 | 3,600 | 5,678 | 8,100 | |||||
| Noncontrolling interest | 1,482 | 1,590 | 1,697 | 1,506 | 1,568 | |||||
| Total Shareholders' Equity | 4,831 | 4,506 | 5,297 | 7,184 | 9,668 | |||||
| Capital | ||||||||||
| Capitalization (4) | 5,584 | 5,151 | 5,986 | 8,085 | 10,696 | |||||
| Adjusted Capitalization excluding AOCI (5) | 10,552 | 10,468 | 10,010 | 10,052 | 10,757 | |||||
| Leverage Ratios | ||||||||||
| Debt-to-Capital (6) | 40.0 | % | 43.4 | % | 39.9 | % | 29.8 | % | 24.3 | % |
| Financial Leverage excluding AOCI (7) | 29.5 | % | 29.8 | % | 32.8 | % | 33.0 | % | 32.6 | % |
| (1) Includes operating leases, capital leases, and unfunded pension plan after-tax. | ||||||||||
| (2) Includes Preferred stock par value and additional paid-in-capital. | ||||||||||
| (3) This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer to the “Explanatory Note on Non-GAAP Financial Information” beginning on page 3 of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Reconciliations” section beginning on page 38 of this document. | ||||||||||
| (4) Includes Total Financial Debt and Total Voya Financial Inc. Shareholders' Equity. | ||||||||||
| (5) Includes Total Financial Obligations, Mezzanine Equity, and Total Shareholders' Equity excluding AOCI. | ||||||||||
| (6) Total Financial Debt divided by Capitalization. | ||||||||||
| (7) Total Financial Obligations and Preferred equity divided by Adjusted Capitalization excluding AOCI. |
| Voya Financial | Page 14 of 47 |
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Consolidated Assets Under Management, Assets Under Administration and Advisement
| As of December 31, 2022 | ||||||
|---|---|---|---|---|---|---|
| (in millions USD) | General Account | Separate Account | Institutional/Mutual Funds | Total AUM - Assets Under Management | AUA - Assets Under Administration & Advisement(2) | Total AUM and AUA |
| Wealth Solutions (1) | 33,881 | 76,348 | 73,427 | 183,656 | 290,621 | 474,277 |
| Health Solutions | 1,866 | 14 | — | 1,880 | — | 1,880 |
| Investment Management | 38,028 | 24,849 | 258,486 | 321,363 | 55,601 | 376,963 |
| Eliminations/Other (3) | (35,747) | (21,037) | (11,151) | (67,935) | (43,958) | (111,893) |
| Total AUM and AUA | 38,028 | 80,174 | 320,762 | 438,964 | 302,264 | 741,227 |
| (1) Includes wrapped funds as well as unwrapped Voya-managed funds. | ||||||
| (2) Wealth Solutions Assets under Administration and Advisement includes Recordkeeping, Stable Value investment-only wrap, Brokerage and Investment Advisory assets. Investment Management Assets under Administration and Advisement includes Mutual Fund, Institutional, Stable Value and General Account assets where only advisement, administrative, distribution coverage, relationship management and client servicing, or ancillary services are performed. | ||||||
| (3) Includes eliminations for AUM and AUA in our Wealth and Health segments that are managed by our Investment Management Segment and also reported in their AUM and AUA. |
Wealth Solutions
| Voya Financial | Page 16 of 47 |
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Wealth Solutions Sources of Adjusted Operating Earnings Before Income Taxes and Key Metrics
| Three Months Ended or As of | Year-to-Date or As of | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions USD) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 | |||||
| Sources of Adjusted operating earnings before income taxes: | ||||||||||||
| Gross investment income | 432 | 427 | 411 | 397 | 387 | 1,667 | 1,565 | |||||
| Investment expenses | (20) | (20) | (20) | (19) | (20) | (79) | (80) | |||||
| Credited interest | (220) | (218) | (219) | (215) | (222) | (873) | (878) | |||||
| Net margin | 192 | 189 | 172 | 163 | 145 | 716 | 607 | |||||
| Other investment income (1) | 57 | 57 | 61 | 54 | 58 | 229 | 205 | |||||
| Investment spread and other investment income, excluding alts/prepays above/below expectations | 249 | 246 | 233 | 217 | 202 | 945 | 812 | |||||
| Alternative investment income and prepayment fees above (below) long-term expectations | (50) | (70) | (7) | 52 | 82 | (76) | 406 | |||||
| Investment spread and other investment income | 199 | 176 | 226 | 269 | 285 | 869 | 1,218 | |||||
| Full service fee based revenue | 134 | 137 | 145 | 156 | 171 | 571 | 663 | |||||
| Recordkeeping and other fee based revenue | 108 | 107 | 112 | 112 | 112 | 439 | 474 | |||||
| Total fee based margin | 241 | 244 | 257 | 268 | 283 | 1,009 | 1,138 | |||||
| Net underwriting gain (loss) and other revenue | 5 | 3 | 4 | 1 | — | 13 | (10) | |||||
| Net revenue (2) | 445 | 423 | 486 | 538 | 568 | 1,892 | 2,345 | |||||
| Administrative expenses | (223) | (214) | (207) | (223) | (232) | (867) | (885) | |||||
| Net commissions | (55) | (57) | (58) | (63) | (66) | (232) | (257) | |||||
| DAC/VOBA and other intangibles amortization | (23) | (24) | (24) | (24) | (24) | (95) | (98) | |||||
| Adjusted operating earnings before income taxes | 145 | 128 | 197 | 228 | 245 | 697 | 1,106 | |||||
| Adjusted Operating Margin TTM | 36.9 | % | 39.6 | % | 44.5 | % | 46.4 | % | 47.2 | % | ||
| Adjusted Operating Margin Excluding Notables TTM | 39.3 | % | 37.9 | % | 37.7 | % | 36.9 | % | 36.8 | % | ||
| Full Service Revenue (3) | ||||||||||||
| Full Service Investment Spread and other investment income | 194 | 170 | 218 | 258 | 272 | 840 | 1,166 | |||||
| Full Service Fee Based Revenue | 134 | 137 | 145 | 156 | 171 | 571 | 663 | |||||
| Total Full Service Revenue | 327 | 307 | 363 | 414 | 443 | 1,412 | 1,829 | |||||
| Client Assets | ||||||||||||
| Fee Based | 379,706 | 356,102 | 369,705 | 414,597 | 434,340 | 379,706 | 434,340 | |||||
| Spread Based | 33,881 | 34,358 | 34,220 | 33,759 | 33,359 | 33,881 | 33,359 | |||||
| Investment-only Stable Value | 38,148 | 38,944 | 39,622 | 40,391 | 40,246 | 38,148 | 40,246 | |||||
| Retail Client Assets | 22,543 | 21,315 | 22,592 | 26,226 | 28,300 | 22,543 | 28,300 | |||||
| Total Client Assets | 474,277 | 450,718 | 466,139 | 514,972 | 536,246 | 474,277 | 536,246 | |||||
| (1) Includes investment income on assets backing surplus and income from policy loans. | ||||||||||||
| (2) Refer to the "Reconciliations" section of this document for a reconciliation of net revenue to adjusted operating revenue. | ||||||||||||
| (3) Excludes Net underwriting gain (loss) and other revenue. |
| Voya Financial | Page 17 of 47 |
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Wealth Solutions Client Assets Rollforward by Product Group
| Three Months Ended | Year-to-Date | ||||||
|---|---|---|---|---|---|---|---|
| (in millions USD) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 |
| Full service - Corporate markets | |||||||
| Client Assets, beginning of period | 80,135 | 83,329 | 94,434 | 99,698 | 95,456 | 99,698 | 86,581 |
| Transfers / Single deposits | 1,603 | 1,074 | 1,176 | 1,676 | 1,575 | 5,529 | 6,578 |
| Recurring deposits | 2,108 | 2,231 | 2,297 | 2,558 | 1,938 | 9,194 | 8,161 |
| Total Deposits | 3,710 | 3,305 | 3,473 | 4,234 | 3,514 | 14,722 | 14,740 |
| Surrenders, benefits, and product charges | (2,900) | (2,589) | (2,798) | (3,623) | (3,941) | (11,910) | (13,709) |
| Net Flows | 811 | 716 | 674 | 612 | (427) | 2,812 | 1,031 |
| Interest credited and investment performance | 5,029 | (3,910) | (11,779) | (5,875) | 4,669 | (16,535) | 12,086 |
| Client Assets, end of period - Corporate markets | 85,975 | 80,135 | 83,329 | 94,434 | 99,698 | 85,975 | 99,698 |
| Full service - Tax-exempt markets | |||||||
| Client Assets, beginning of period | 73,119 | 75,627 | 83,727 | 88,004 | 84,929 | 88,004 | 78,831 |
| Transfers / Single deposits | 887 | 248 | 534 | 374 | 399 | 2,043 | 2,344 |
| Recurring deposits | 1,061 | 986 | 1,006 | 1,046 | 980 | 4,100 | 3,895 |
| Total Deposits | 1,948 | 1,235 | 1,540 | 1,420 | 1,379 | 6,143 | 6,239 |
| Surrenders, benefits, and product charges | (1,807) | (1,395) | (1,215) | (1,586) | (1,836) | (6,002) | (6,694) |
| Net Flows | 141 | (161) | 326 | (165) | (457) | 141 | (455) |
| Interest credited and investment performance | 3,429 | (2,347) | (8,426) | (4,112) | 3,533 | (11,456) | 9,628 |
| Client Assets, end of period - Tax-exempt markets | 76,690 | 73,119 | 75,627 | 83,727 | 88,004 | 76,690 | 88,004 |
| Full Service - Total | |||||||
| Client Assets, beginning of period | 153,254 | 158,956 | 178,161 | 187,702 | 180,385 | 187,702 | 165,412 |
| Transfers / Single deposits | 2,489 | 1,322 | 1,710 | 2,050 | 1,974 | 7,571 | 8,922 |
| Recurring deposits | 3,169 | 3,217 | 3,303 | 3,604 | 2,918 | 13,294 | 12,056 |
| Total Deposits | 5,658 | 4,540 | 5,013 | 5,654 | 4,893 | 20,865 | 20,979 |
| Surrenders, benefits, and product charges | (4,706) | (3,984) | (4,013) | (5,209) | (5,777) | (17,912) | (20,403) |
| Net Flows | 952 | 555 | 1,000 | 446 | (884) | 2,953 | 576 |
| Interest credited and investment performance | 8,458 | (6,257) | (20,205) | (9,987) | 8,202 | (27,991) | 21,714 |
| Client Assets, end of period - Full Service Total | 162,664 | 153,254 | 158,956 | 178,161 | 187,702 | 162,664 | 187,702 |
| Full Service - Client Assets | |||||||
| Fee-based | 129,199 | 119,325 | 125,206 | 144,888 | 154,839 | 129,199 | 154,839 |
| Spread-based | 33,466 | 33,929 | 33,749 | 33,273 | 32,864 | 33,466 | 32,864 |
| Client Assets, end of period - Full Service Total | 162,664 | 153,254 | 158,956 | 178,161 | 187,702 | 162,664 | 187,702 |
| Voya Financial | Page 18 of 47 |
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Wealth Solutions Client Assets Rollforward by Product Group
| Three Months Ended | Year-to-Date | ||||||
|---|---|---|---|---|---|---|---|
| (in millions USD) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 |
| Recordkeeping | |||||||
| Client Assets, beginning of period | 236,776 | 244,499 | 269,708 | 279,501 | 274,265 | 279,501 | 247,309 |
| Transfers / Single deposits | 979 | 3,573 | 1,595 | 1,955 | 812 | 8,101 | 8,431 |
| Recurring deposits | 3,778 | 4,278 | 4,359 | 5,217 | 3,892 | 17,632 | 16,531 |
| Total Deposits | 4,758 | 7,851 | 5,954 | 7,172 | 4,705 | 25,734 | 24,962 |
| Surrenders, benefits, and product charges | (5,327) | (5,846) | (5,730) | (8,065) | (12,451) | (24,967) | (31,692) |
| Net Flows | (569) | 2,004 | 224 | (893) | (7,747) | 766 | (6,731) |
| Interest credited and investment performance | 14,300 | (9,726) | (25,435) | (8,900) | 12,982 | (29,761) | 38,923 |
| Client Assets, end of period - Recordkeeping | 250,507 | 236,776 | 244,499 | 269,708 | 279,501 | 250,507 | 279,501 |
| Total Defined Contribution (1) | |||||||
| Client Assets, beginning of period | 390,031 | 403,454 | 447,870 | 467,203 | 454,650 | 467,203 | 412,721 |
| Transfers / Single deposits | 3,469 | 4,895 | 3,304 | 4,005 | 2,786 | 15,673 | 17,354 |
| Recurring deposits | 6,947 | 7,495 | 7,663 | 8,822 | 6,811 | 30,926 | 28,587 |
| Total Deposits | 10,416 | 12,390 | 10,967 | 12,827 | 9,597 | 46,599 | 45,941 |
| Surrenders, benefits, and product charges | (10,033) | (9,831) | (9,743) | (13,273) | (18,229) | (42,879) | (52,095) |
| Net Flows | 383 | 2,559 | 1,224 | (446) | (8,632) | 3,719 | (6,154) |
| Interest credited and investment performance | 22,758 | (15,983) | (45,640) | (18,887) | 21,184 | (57,752) | 60,636 |
| Client Assets, end of period - Total Defined Contribution | 413,171 | 390,031 | 403,454 | 447,870 | 467,203 | 413,171 | 467,203 |
| Defined Contribution Investment-only Stable Value (SV) (2) | |||||||
| Assets, beginning of period | 38,944 | 39,622 | 40,390 | 40,246 | 41,329 | 40,246 | 42,864 |
| Transfers / Single deposits | 435 | 177 | 630 | 1,500 | 280 | 2,742 | 1,169 |
| Recurring deposits | 440 | 169 | 203 | 190 | 103 | 1,002 | 525 |
| Total Deposits | 875 | 346 | 833 | 1,690 | 382 | 3,744 | 1,694 |
| Surrenders, benefits, and product charges | (1,269) | (431) | (284) | (545) | (1,112) | (2,529) | (3,802) |
| Net Flows | (394) | (84) | 549 | 1,144 | (730) | 1,215 | (2,108) |
| Interest credited and investment performance | (402) | (593) | (1,319) | (1,000) | (353) | (3,314) | (509) |
| Assets, end of period - Defined Contribution Investment-only SV | 38,148 | 38,944 | 39,622 | 40,390 | 40,246 | 38,148 | 40,246 |
| Retail Client Assets (3) | 22,548 | 21,320 | 22,598 | 26,232 | 28,306 | 22,548 | 28,306 |
| Other Assets (4) | 410 | 423 | 465 | 480 | 490 | 410 | 490 |
| Total Client Assets | 474,277 | 450,718 | 466,139 | 514,972 | 536,246 | 474,277 | 536,246 |
| (1) Total of Full Service and Recordkeeping | |||||||
| (2) Includes Stable Value Investment-only Wrap and Stable Value Separate Accounts. | |||||||
| (3) Includes assets of our Retail Wealth Management business, as well as assets in a proprietary IRA mutual fund product that is distributed by both VFA (affiliated) and non-affiliated advisors. | |||||||
| (4) Includes other guaranteed payout products and Non-qualified Retirement Plans. |
Health Solutions
| Voya Financial | Page 20 of 47 |
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Health Solutions Sources of Adjusted Operating Earnings Before Income Taxes
| Year-to-Date | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions ) | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 | |||||||
| Sources of Adjusted operating earnings before income taxes: | |||||||||||||
| Gross investment income | 24 | 25 | 23 | 23 | 96 | 92 | |||||||
| Investment expenses | (1) | (1) | (1) | (1) | (4) | (4) | |||||||
| Credited interest | (13) | (13) | (13) | (13) | (52) | (54) | |||||||
| Net margin | 11 | 10 | 9 | 9 | 41 | 34 | |||||||
| Other investment income | 13 | 12 | 12 | 10 | 50 | 36 | |||||||
| Investment spread and other investment income, excluding alts/prepays above/below expectations | 24 | 22 | 20 | 20 | 90 | 70 | |||||||
| Alternative investment income and prepayment fees above (below) long-term expectations | (7) | — | 5 | 9 | (7) | 41 | |||||||
| Investment spread and other investment income | 17 | 22 | 25 | 28 | 83 | 111 | |||||||
| Net underwriting gain (loss) and other revenue | 293 | 176 | 144 | 142 | 819 | 609 | |||||||
| Net revenue (1) | 310 | 198 | 169 | 171 | 902 | 720 | |||||||
| Administrative expenses | (66) | (67) | (72) | (66) | (276) | (237) | |||||||
| Premium taxes, fees and assessments | (39) | (32) | (28) | (29) | (126) | (109) | |||||||
| Net commissions | (41) | (42) | (42) | (38) | (167) | (147) | |||||||
| DAC/VOBA and other intangibles amortization | (9) | (7) | (6) | (6) | (29) | (24) | |||||||
| Adjusted operating earnings before income taxes | 154 | 50 | 21 | 31 | 304 | 204 | |||||||
| Adjusted Operating Margin TTM | % | 30.3 | % | 23.4 | % | 25.5 | % | 28.3 | % | ||||
| Adjusted Operating Margin Excluding Notables TTM | % | 31.2 | % | 29.6 | % | 31.6 | % | 33.6 | % | ||||
| Group life: | |||||||||||||
| Premiums | 150 | 148 | 143 | 139 | 593 | 548 | |||||||
| Benefits | (50) | (133) | (166) | (136) | (473) | (525) | |||||||
| Other (2) | (2) | (1) | (2) | (2) | (6) | (10) | |||||||
| Total Group life | 98 | 14 | (25) | 1 | 114 | 14 | |||||||
| Group Life Loss Ratio (Interest adjusted) | % | 71.4 | % | 89.5 | % | 115.8 | % | 97.8 | % | 89.5 | % | 95.7 | % |
| Group stop loss: | |||||||||||||
| Premiums | 311 | 302 | 303 | 288 | 1,230 | 1,165 | |||||||
| Benefits | (238) | (238) | (232) | (224) | (934) | (901) | |||||||
| Other (2) | (1) | (1) | (1) | (1) | (5) | (5) | |||||||
| Total Group stop loss | 72 | 63 | 70 | 63 | 292 | 260 | |||||||
| Stop loss Loss Ratio | % | 76.4 | % | 78.9 | % | 76.5 | % | 77.7 | % | 75.9 | % | 77.3 | % |
| Voluntary Benefits, Disability, and Other | 123 | 99 | 99 | 78 | 413 | 335 | |||||||
| Net underwriting gain (loss) and other revenue | |||||||||||||
| Premiums | 619 | 609 | 602 | 561 | 2,457 | 2,247 | |||||||
| Benefits | (326) | (430) | (460) | (419) | (1,636) | (1,628) | |||||||
| Other (2) | 1 | (3) | 1 | — | (2) | (10) | |||||||
| Total Net underwriting gain (loss) and other revenue | 293 | 176 | 144 | 142 | 819 | 609 | |||||||
| Total Aggregate Loss Ratio TTM (3) | % | 70.7 | % | 73.1 | % | 73.3 | % | 72.5 | % | 68.9 | % | 72.5 | % |
| (1) Refer to the "Reconciliations" section of this document for a reconciliation of net revenue to adjusted operating revenue. | |||||||||||||
| (2) Includes service fees, dividends, interest expenses, and other miscellaneous expenses. The Loss Ratio calculation does not include Other. | |||||||||||||
| (3) Loss ratio excludes 57M of favorable reserve release in 3Q'22 related to our annual assumption update. |
All values are in US Dollars.
| Voya Financial | Page 21 of 47 |
|---|
Health Solutions Key Metrics
| Three Months Ended or As of | Year-to-Date or As of | ||||||
|---|---|---|---|---|---|---|---|
| (in millions USD) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 |
| Sales by Product Line: | |||||||
| Group life and Disability | 23 | 4 | 14 | 86 | 12 | 126 | 110 |
| Stop loss | 20 | 42 | 24 | 323 | 14 | 409 | 355 |
| Voluntary | 13 | 12 | 20 | 104 | 6 | 149 | 128 |
| Total sales by product line | 56 | 58 | 58 | 513 | 31 | 684 | 593 |
| Total gross premiums and deposits | 687 | 707 | 671 | 660 | 610 | 2,724 | 2,429 |
| Annualized In-force Premiums by Product Line: | |||||||
| Group life and Disability | 833 | 817 | 811 | 807 | 752 | 833 | 752 |
| Stop loss | 1,258 | 1,259 | 1,231 | 1,220 | 1,181 | 1,258 | 1,181 |
| Voluntary | 689 | 684 | 681 | 678 | 576 | 689 | 576 |
| Total annualized in-force premiums | 2,780 | 2,760 | 2,722 | 2,705 | 2,510 | 2,780 | 2,510 |
| Assets Under Management by Fund Group: | |||||||
| General account | 1,866 | 1,938 | 1,981 | 1,886 | 1,869 | 1,866 | 1,869 |
| Separate account | 14 | 14 | 15 | 17 | 18 | 14 | 18 |
| Total AUM | 1,880 | 1,952 | 1,996 | 1,903 | 1,887 | 1,880 | 1,887 |
Investment Management
| Voya Financial | Page 23 of 47 |
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Investment Management Sources of Adjusted Operating Earnings Before Income Taxes
| Three Months Ended | Year-to-Date | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions USD) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 | |||||
| Sources of Adjusted operating earnings before income taxes: | ||||||||||||
| Investment capital and other investment income, excluding alts/prepays above/below expectations | 8 | 8 | 8 | 8 | 8 | 33 | 28 | |||||
| Alternative investment income and prepayment fees above (below) long-term expectations | (9) | (20) | (3) | 3 | 12 | (29) | 75 | |||||
| Investment spread and other investment income | (1) | (12) | 6 | 11 | 20 | 3 | 103 | |||||
| Fee based margin (1) | 216 | 204 | 165 | 167 | 181 | 753 | 680 | |||||
| Net revenue (2) | 215 | 192 | 171 | 178 | 201 | 756 | 783 | |||||
| Administrative expenses (3) | (158) | (142) | (131) | (139) | (142) | (570) | (544) | |||||
| Adjusted operating earnings before income taxes, including Allianz noncontrolling interest | 57 | 51 | 40 | 39 | 59 | 186 | 239 | |||||
| Adjusted Operating Margin TTM | 24.7 | % | 25.5 | % | 26.8 | % | 29.4 | % | 30.7 | % | ||
| Adjusted Operating Margin Excluding Notables TTM | 26.8 | % | 26.0 | % | 24.1 | % | 25.2 | % | 25.1 | % | ||
| Fee based margin (1) | ||||||||||||
| Investment advisory and administrative revenue | 209 | 202 | 160 | 165 | 178 | 736 | 667 | |||||
| Other fee based margin | 6 | 2 | 6 | 2 | 3 | 17 | 13 | |||||
| Fee based margin | 216 | 204 | 165 | 167 | 181 | 753 | 680 | |||||
| Reconciliation to Adjusted operating earnings before income taxes | ||||||||||||
| Adjusted operating earnings before income taxes, including Allianz noncontrolling interest | 57 | 51 | 40 | 39 | 59 | 186 | 239 | |||||
| Less: Earnings (loss) attributable to Allianz noncontrolling interest | 14 | 13 | — | — | — | 27 | — | |||||
| Adjusted operating earnings before income taxes | 42 | 38 | 40 | 39 | 59 | 158 | 239 | |||||
| (1) Includes mutual fund third party distribution revenues which are reported net of distribution expenses, consistent with the U.S. GAAP presentation. | ||||||||||||
| (2) Refer to the "Reconciliations" section of this document for a reconciliation of net revenue to adjusted operating revenue. | ||||||||||||
| (3) Includes expenses attributable to investment capital results above (below) long-term expectations. |
| Voya Financial | Page 24 of 47 |
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Investment Management Analysis of AUM and AUA
| Three Months Ended | Year-to-Date | ||||||
|---|---|---|---|---|---|---|---|
| (in millions USD) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 |
| Client Assets: | |||||||
| External Clients | |||||||
| Institutional | 161,502 | 160,720 | 136,596 | 143,581 | 148,921 | 161,502 | 148,921 |
| Retail | 121,833 | 118,016 | 61,070 | 71,578 | 76,908 | 121,833 | 76,908 |
| Subtotal External Clients | 283,335 | 278,735 | 197,666 | 215,159 | 225,829 | 283,335 | 225,829 |
| General Account | 38,028 | 38,614 | 38,686 | 38,049 | 38,004 | 38,028 | 38,004 |
| Total Client Assets (AUM) | 321,363 | 317,349 | 236,352 | 253,208 | 263,832 | 321,363 | 263,832 |
| Assets under Advisement and Administration (AUA) | 55,601 | 51,862 | 53,359 | 57,187 | 59,823 | 55,601 | 59,823 |
| Total AUM and AUA | 376,963 | 369,210 | 289,710 | 310,395 | 323,656 | 376,963 | 323,656 |
| Investment Advisory and Administrative Revenues (1) | |||||||
| External Clients | |||||||
| Institutional | 90 | 89 | 86 | 87 | 92 | 352 | 334 |
| Retail | 95 | 88 | 49 | 53 | 59 | 284 | 227 |
| Subtotal External Clients | 185 | 177 | 134 | 140 | 151 | 636 | 561 |
| General Account | 20 | 20 | 20 | 20 | 20 | 80 | 82 |
| Total Investment Advisory and Administrative Revenues (AUM) | 205 | 197 | 154 | 160 | 171 | 717 | 643 |
| Administration Only Fees | 5 | 5 | 5 | 5 | 6 | 20 | 22 |
| Total Investment Advisory and Administrative Revenues | 209 | 202 | 160 | 165 | 178 | 736 | 667 |
| Revenue Yield (bps) (1) | |||||||
| External Clients | |||||||
| Institutional | 22.1 | 21.4 | 24.5 | 23.7 | 25.3 | 20.7 | 23.9 |
| Retail | 31.1 | 28.0 | 29.4 | 29.1 | 30.6 | 22.1 | 29.7 |
| Revenue Yield on External Clients | 26.0 | 24.3 | 26.1 | 25.5 | 27.1 | 21.3 | 25.9 |
| General Account | 20.8 | 21.1 | 21.1 | 21.1 | 21.0 | 21.0 | 21.4 |
| Revenue Yield on Client Assets (AUM) | 25.3 | 23.9 | 25.3 | 24.8 | 26.2 | 21.3 | 25.2 |
| Revenue Yield on Advisement and Administrative Only Assets (AUA) | 3.7 | 3.4 | 3.8 | 3.5 | 4.1 | 3.6 | 3.7 |
| Total Revenue Yield on AUM and AUA (bps) | 22.3 | 21.0 | 21.3 | 20.9 | 22.1 | 18.8 | 21.1 |
| Revenue Yield on Client Assets (AUM) - trailing twelve months | 21.3 | 25.2 | 25.8 | 25.4 | 25.2 | 21.3 | 25.2 |
| (1) Investment Advisory and Administrative Revenues and resulting Revenue Yields exclude any performance fees. | |||||||
| (2) External client yields do not reflect a full quarter of revenues resulting from the Allianz transaction. |
| Voya Financial | Page 25 of 47 |
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Investment Management Account Rollforward by Source
| Three Months Ended | Year-to-Date | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions USD) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 | |||||||
| Institutional AUM: | ||||||||||||||
| Beginning of period AUM | 160,720 | 136,595 | 143,580 | 148,921 | 138,332 | 148,921 | 111,964 | |||||||
| Inflows | 8,249 | 4,759 | 5,500 | 5,963 | 12,899 | 24,470 | 27,317 | |||||||
| Outflows | (7,904) | (5,648) | (3,502) | (3,742) | (3,383) | (20,796) | (18,242) | |||||||
| Net flows- Institutional | 345 | (889) | 1,998 | 2,221 | 9,516 | 3,675 | 9,075 | |||||||
| Change in Market Value | 2,341 | (5,815) | (8,803) | (7,411) | 1,028 | (19,689) | 2,371 | |||||||
| Other (Including Acquisitions / Divestitures) | (1,903) | 30,828 | (180) | (151) | 45 | 28,595 | 25,511 | |||||||
| End of period AUM - Institutional | 161,503 | 160,720 | 136,595 | 143,580 | 148,921 | 161,502 | 148,921 | |||||||
| Organic Growth (Net Flows/Beginning of period AUM) | 0.2 | % | -0.7 | % | 1.4 | % | 1.5 | % | 6.9 | % | 2.5 | % | 8.1 | % |
| Market Growth % | 1.5 | % | -4.3 | % | -6.1 | % | -5.0 | % | 0.7 | % | -13.2 | % | 2.1 | % |
| Retail AUM: | ||||||||||||||
| Beginning of period AUM | 118,016 | 61,070 | 71,579 | 76,908 | 75,352 | 76,908 | 75,116 | |||||||
| Inflows | 7,203 | 6,683 | 2,290 | 2,609 | 2,207 | 18,783 | 9,456 | |||||||
| Outflows | (7,400) | (6,754) | (3,728) | (3,502) | (2,727) | (21,384) | (10,760) | |||||||
| Net flows- Retail | (198) | (71) | (1,439) | (893) | (520) | (2,601) | (1,304) | |||||||
| Net Money Market Flows | 51 | 45 | 120 | (18) | 11 | 197 | (290) | |||||||
| Change in Market Value | 3,232 | (6,332) | (8,352) | (4,181) | 3,001 | (15,633) | 8,709 | |||||||
| Net Flows from Divested Businesses | (497) | (467) | (525) | (668) | (761) | (2,156) | (2,974) | |||||||
| Other (Including Acquisitions / Divestitures) | 1,229 | 63,771 | (313) | 431 | (174) | 65,119 | (2,348) | |||||||
| End of period AUM - Retail | 121,833 | 118,016 | 61,070 | 71,579 | 76,908 | 121,834 | 76,908 | |||||||
| Retail Organic Growth excluding Net Flows from Divested Businesses and Sub-advisor <br>Replacements (Net Flows / Beginning of period AUM) | -0.2 | % | -0.1 | % | -2.0 | % | -1.2 | % | -0.7 | % | -3.4 | % | -1.7 | % |
| Market Growth % | 2.7 | % | -10.4 | % | -11.7 | % | -5.4 | % | 4.0 | % | -20.3 | % | 11.6 | % |
| Net Flows: | ||||||||||||||
| Institutional Net Flows | 345 | (889) | 1,998 | 2,221 | 9,516 | 3,675 | 9,075 | |||||||
| Retail Net Flows | (198) | (71) | (1,439) | (893) | (520) | (2,601) | (1,304) | |||||||
| Net Flows from Divested Businesses | (497) | (467) | (525) | (668) | (761) | (2,156) | (2,974) | |||||||
| Total Net Flows | (350) | (1,427) | 34 | 660 | 8,234 | (1,082) | 4,796 | |||||||
| Net Flows excluding Net Flows from Divested Businesses and Sub-advisor Replacements | 147 | (960) | 559 | 1,328 | 8,995 | 1,074 | 7,770 | |||||||
| Total External Clients Organic Growth (Net Flows excluding Divested Businesses and Sub-advisor Replacement / Beginning period AUM)(1) | 0.1 | % | -0.5 | % | 0.3 | % | 0.6 | % | 4.2 | % | 0.5 | % | 4.2 | % |
| (1) Includes net flows related to Allianz transaction as of July 25, 2022. |
| Voya Financial | Page 26 of 47 |
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Investment Management Account Value by Asset Type
| Balances as of | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (in millions USD) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | |||||
| Institutional | ||||||||||
| Equity | 22,943 | 22,835 | 12,086 | 14,830 | 14,994 | |||||
| Fixed Income - Public | 57,532 | 59,752 | 62,378 | 67,693 | 72,550 | |||||
| Fixed Income - Privates | 67,809 | 63,361 | 47,177 | 45,985 | 46,631 | |||||
| Alternatives | 13,218 | 14,771 | 14,955 | 15,073 | 14,746 | |||||
| Money Market | — | — | — | — | — | |||||
| Total | 161,502 | 160,720 | 136,596 | 143,581 | 148,921 | |||||
| Retail | ||||||||||
| Equity | 60,244 | 57,343 | 36,100 | 44,128 | 47,583 | |||||
| Fixed Income - Public | 58,480 | 57,714 | 22,124 | 24,749 | 26,676 | |||||
| Fixed Income - Privates | 483 | 499 | 547 | 611 | 634 | |||||
| Alternatives | 822 | 724 | 611 | 542 | 470 | |||||
| Money Market | 1,803 | 1,736 | 1,688 | 1,548 | 1,546 | |||||
| Total | 121,833 | 118,016 | 61,070 | 71,578 | 76,908 | |||||
| General Account | ||||||||||
| Equity | 237 | 241 | 242 | 216 | 308 | |||||
| Fixed Income - Public | 19,748 | 20,701 | 20,416 | 20,217 | 20,000 | |||||
| Fixed Income - Privates | 14,942 | 14,877 | 14,764 | 14,500 | 14,601 | |||||
| Alternatives | 2,378 | 2,450 | 2,732 | 2,628 | 2,645 | |||||
| Money Market | 724 | 344 | 532 | 488 | 449 | |||||
| Total | 38,028 | 38,614 | 38,686 | 38,049 | 38,004 | |||||
| Combined Asset Type | ||||||||||
| Equity | 83,424 | 80,419 | 48,429 | 59,174 | 62,884 | |||||
| Fixed Income - Public | 135,760 | 138,166 | 104,917 | 112,659 | 119,225 | |||||
| Fixed Income - Privates | 83,234 | 78,737 | 62,488 | 61,097 | 61,867 | |||||
| Alternatives | 16,418 | 17,945 | 18,298 | 18,243 | 17,861 | |||||
| Money Market | 2,527 | 2,080 | 2,220 | 2,036 | 1,995 | |||||
| Total | 321,363 | 317,349 | 236,352 | 253,208 | 263,832 | |||||
| Total Private and Alternative Assets | 99,652 | 96,683 | 80,786 | 79,340 | 79,728 | |||||
| % of Private and Alternative Assets / Total AUM | 31.0 | % | 30.5 | % | 34.2 | % | 31.3 | % | 30.2 | % |
| Total Wealth Assets | 162,355 | 158,900 | 101,885 | 110,305 | 112,905 | |||||
| % of Wealth Assets / Total AUM | 50.5 | % | 50.1 | % | 43.1 | % | 43.6 | % | 42.8 | % |
Corporate
| Voya Financial | Page 28 of 47 |
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Corporate Adjusted Operating Earnings Before Income Taxes
| Three Months Ended | Year-to-Date | ||||||
|---|---|---|---|---|---|---|---|
| (in millions USD) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 |
| Interest expense (excluding Preferred stock dividends) (1) | (33) | (35) | (36) | (38) | (40) | (142) | (165) |
| Preferred stock dividends | (4) | (14) | (4) | (14) | (4) | (36) | (36) |
| Stranded costs net of TSA revenue | — | (1) | (4) | (4) | 3 | (9) | (15) |
| Pension expense (2) | (11) | (10) | (10) | (10) | (8) | (41) | (37) |
| Other (3) | (12) | (6) | (6) | (2) | (21) | (25) | (72) |
| Adjusted operating earnings before income taxes, including Allianz noncontrolling interest | (60) | (66) | (60) | (68) | (70) | (253) | (325) |
| Less: Earnings (loss) attributable to Allianz noncontrolling interest | (1) | — | — | — | — | (1) | — |
| Adjusted operating earnings before income taxes | (59) | (65) | (60) | (68) | (70) | (251) | (325) |
| (1) Includes interest expense related to intercompany loans and other operating expenses related to financing agreements. | |||||||
| (2) Pension expense includes service costs for our qualified defined benefit pension plan and service and interest costs for our non-qualified defined benefit pension plan, but excludes the estimated return on plan assets net of interest costs for our qualified defined benefit pension plan as well as net actuarial gains (losses) related to all of our pension plans and other post retirement plans, which includes actuarial gains and (losses) as a result of differences between actual and expected experience on plan assets or projected benefit obligations. | |||||||
| (3) Other primarily includes changes in incentive compensation accruals for above (below) target performance, corporate insurance costs, and certain corporate expenses that are either short duration projects or other items not expected to recur at the same level. |
Net Revenue, Adjusted Operating Margin,
Administrative Expenses, and Adjusted Operating Return on Capital
| Voya Financial | Page 30 of 47 |
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Net Revenue and Adjusted Operating Margin
| Three Months Ended | Twelve Months Ended | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions USD) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 | |||||||
| Net Revenue Excluding Notable Items | ||||||||||||||
| Wealth Solutions | ||||||||||||||
| Investment spread and other investment income | 249 | 246 | 233 | 217 | 202 | 945 | 809 | |||||||
| Fee based margin | 241 | 244 | 257 | 268 | 283 | 1,009 | 1,112 | |||||||
| Net underwriting gain (loss) and other revenue | 5 | 3 | 4 | 1 | — | 13 | (9) | |||||||
| Wealth Solutions Net Revenue | 495 | 493 | 494 | 486 | 485 | 1,967 | 1,912 | |||||||
| Health Solutions | ||||||||||||||
| Investment spread and other investment income | 24 | 24 | 22 | 20 | 20 | 90 | 70 | |||||||
| Net underwriting gain (loss) and other revenue | 205 | 236 | 176 | 184 | 176 | 802 | 707 | |||||||
| Health Solutions Net Revenue | 230 | 260 | 198 | 204 | 196 | 892 | 777 | |||||||
| Investment Management | ||||||||||||||
| Investment capital and other investment income | 8 | 8 | 8 | 8 | 8 | 33 | 28 | |||||||
| Fee based margin | 216 | 204 | 165 | 167 | 181 | 753 | 680 | |||||||
| Investment Management Net Revenue | 224 | 212 | 173 | 175 | 189 | 785 | 708 | |||||||
| Total Net Revenue Excluding Notable Items (1) | 949 | 965 | 865 | 865 | 870 | 3,644 | 3,397 | |||||||
| Adjusted Operating Earnings Excluding Notable Items | ||||||||||||||
| Wealth Solutions | 195 | 198 | 204 | 176 | 163 | 773 | 704 | |||||||
| Health Solutions | 83 | 105 | 51 | 56 | 56 | 294 | 261 | |||||||
| Investment Management | 64 | 67 | 42 | 37 | 49 | 210 | 178 | |||||||
| Total Adjusted Operating Earnings Excluding Corporate and Notable Items (1) | 342 | 370 | 297 | 269 | 268 | 1,277 | 1,143 | |||||||
| Corporate | (60) | (65) | (60) | (68) | (53) | (253) | (268) | |||||||
| Total Adjusted operating earnings Excluding Notable Items, including Allianz noncontrolling interest | 282 | 305 | 236 | 201 | 215 | 1,024 | 874 | |||||||
| Less: Earnings (loss) attributable to Allianz noncontrolling interest excluding notable items | 13 | 13 | — | — | — | 26 | — | |||||||
| Total Adjusted Operating Earnings Excluding Notable Items (1) | 269 | 291 | 236 | 201 | 215 | 997 | 874 | |||||||
| Adjusted Operating Margin Excluding Notable Items | ||||||||||||||
| Wealth Solutions | 39.3 | % | 40.2 | % | 41.4 | % | 36.2 | % | 33.6 | % | 39.3 | % | 36.8 | % |
| Health Solutions | 36.0 | % | 40.2 | % | 25.5 | % | 27.5 | % | 28.7 | % | 33.0 | % | 33.6 | % |
| Investment Management | 28.6 | % | 31.6 | % | 24.3 | % | 21.1 | % | 25.9 | % | 26.8 | % | 25.1 | % |
| Total Adjusted Operating Margin Excluding Corporate and Notable Items | 36.0 | % | 38.2 | % | 34.2 | % | 31.1 | % | 30.9 | % | 35.0 | % | 33.6 | % |
| Total Adjusted Operating Margin Including Corporate, Excluding Notable Items | 29.7 | % | 31.5 | % | 27.3 | % | 23.2 | % | 24.7 | % | 28.1 | % | 25.7 | % |
| Adjusted Operating Margin Excluding Notable Items Trailing Twelve Months | ||||||||||||||
| Wealth Solutions | 39.3 | % | 37.9 | % | 37.7 | % | 36.9 | % | 36.8 | % | ||||
| Health Solutions | 33.0 | % | 31.2 | % | 29.6 | % | 31.6 | % | 33.6 | % | ||||
| Investment Management | 26.8 | % | 26.0 | % | 24.1 | % | 25.2 | % | 25.1 | % | ||||
| Total Adjusted Operating Margin Excluding Corporate and Notable Items | 35.0 | % | 33.7 | % | 33.0 | % | 33.2 | % | 33.6 | % | ||||
| Total Adjusted Operating Margin Including Corporate, Excluding Notable Items | 28.1 | % | 26.8 | % | 25.9 | % | 25.8 | % | 25.7 | % | ||||
| (1) Refer to the “Reconciliations” section for a reconciliation of net revenue to net revenues excluding notable items and of adjusted operating earnings before income taxes to adjusted operating earnings excluding notable items. |
| Voya Financial | Page 31 of 47 |
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Administrative Expenses
| Three Months Ended | Twelve Months Ended | ||||||
|---|---|---|---|---|---|---|---|
| (in millions USD) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 |
| Wealth Solutions | (223) | (214) | (207) | (223) | (232) | (867) | (885) |
| Health Solutions | (71) | (66) | (67) | (72) | (66) | (276) | (237) |
| Investment Management | (158) | (142) | (131) | (139) | (142) | (570) | (544) |
| Stranded costs net of TSA revenue (1) | — | (1) | (4) | (4) | 3 | (9) | (15) |
| Total Administrative Expenses (2) | (452) | (423) | (409) | (438) | (437) | (1,722) | (1,681) |
| (1) Includes Stranded Costs, net of associated TSA revenue, subsequent to the closing of the Individual Life Transaction. | |||||||
| (2) Excludes certain expenses reported in Corporate related to changes in incentive compensation accruals for above (below) target performance, pension expense, and certain corporate expenses that are either short duration projects or expenses not expected to recur at the same level. |
| Voya Financial | Page 32 of 47 |
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Adjusted Operating Return on Allocated Capital
| Twelve Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (in millions USD, unless otherwise indicated) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | |||||
| Wealth Solutions | ||||||||||
| Adjusted operating earnings before income taxes - before interest | 697 | 798 | 990 | 1,077 | 1,106 | |||||
| Income tax expense | 98 | 122 | 164 | 185 | 194 | |||||
| Adjusted Operating Earnings - before interest and after income taxes | 599 | 676 | 826 | 892 | 912 | |||||
| Adjusted Operating effective tax rate (1) | 12.7 | % | 11.6 | % | 14.9 | % | 15.7 | % | 17.0 | % |
| Adjusted Operating effective tax rate - Trailing Twelve Months | 14.1 | % | 15.3 | % | 16.6 | % | 17.2 | % | 17.5 | % |
| Average Capital | 3,710 | 3,730 | 3,742 | 3,738 | 3,762 | |||||
| Ending Capital (2) | 3,670 | 3,677 | 3,749 | 3,721 | 3,716 | |||||
| Adjusted Return on Capital | 16.1 | % | 18.1 | % | 22.1 | % | 23.9 | % | 24.3 | % |
| Health Solutions | ||||||||||
| Adjusted operating earnings before income taxes - before interest | 304 | 256 | 171 | 185 | 204 | |||||
| Income tax expense | 64 | 54 | 36 | 39 | 43 | |||||
| Adjusted Operating Earnings - before interest and after income taxes | 240 | 202 | 135 | 146 | 161 | |||||
| Adjusted Operating effective tax rate (1) | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % |
| Adjusted Operating effective tax rate - Trailing Twelve Months | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % |
| Average Capital | 591 | 555 | 528 | 513 | 507 | |||||
| Ending Capital (2) | 662 | 650 | 576 | 549 | 519 | |||||
| Adjusted Return on Capital | 40.6 | % | 36.6 | % | 25.7 | % | 28.6 | % | 31.8 | % |
| Investment Management | ||||||||||
| Adjusted operating earnings before income taxes - before interest | 158 | 176 | 201 | 227 | 239 | |||||
| Income tax expense | 33 | 37 | 42 | 48 | 50 | |||||
| Adjusted Operating Earnings - before interest and after income taxes | 125 | 139 | 159 | 179 | 189 | |||||
| Adjusted Operating effective tax rate (1) | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % |
| Adjusted Operating effective tax rate - Trailing Twelve Months | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % |
| Average Capital | 582 | 488 | 427 | 403 | 387 | |||||
| Ending Capital (2) | 797 | 778 | 486 | 458 | 420 | |||||
| Adjusted Return on Capital | 21.5 | % | 28.3 | % | 37.0 | % | 44.3 | % | 48.7 | % |
| (1) We assume a 21% tax rate on segment Adjusted operating earnings, less the estimated benefit of the dividends received deduction and foreign tax credits in our Wealth Solutions segment. | ||||||||||
| (2) Capital is allocated to each of our segments in proportion to each segment’s target statutory capital, plus an allocation of the differences between statutory capital and total Voya Financial, Inc. shareholders' equity on a GAAP basis (excluding AOCI), based on each segment’s portion of these differences. |
Investment Information
| Voya Financial | Page 34 of 47 |
|---|
Portfolio Results GAAP Book Value, Gross Investment Income, and Earned Rate by Asset Class
| Three Months Ended or As of | Year-to-Date or As of | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions USD) | 12/31/2022 | 9/30/2022 | 12/31/2022 | |||||||||||||||
| Invested Assets | ||||||||||||||||||
| Book Values, Gross investment income and Earned rate (1) | Book Value | BV % | Gross Investment Income | Earned Rate (annualized) | Book Value | BV % | Gross Investment Income | Earned Rate (annualized) | Book Value | BV % | Gross Investment Income | Earned Rate (annualized) | ||||||
| Public corporate | 12,179 | 30.0 | % | 163 | 5.2 | % | 13,093 | 32.0 | % | 162 | 5.0 | % | 12,179 | 30.0 | % | 641 | 5.0 | % |
| Private credit | 8,222 | 20.0 | % | 84 | 4.2 | % | 8,233 | 20.0 | % | 84 | 4.2 | % | 8,222 | 20.0 | % | 333 | 4.2 | % |
| Securitized (2)(3) | 10,654 | 26.0 | % | 157 | 6.0 | % | 10,651 | 26.0 | % | 147 | 5.7 | % | 10,654 | 26.0 | % | 556 | 5.5 | % |
| Commercial mortgage loans | 5,413 | 13.0 | % | 59 | 4.5 | % | 5,376 | 13.0 | % | 56 | 4.2 | % | 5,413 | 13.0 | % | 223 | 4.2 | % |
| Municipals | 952 | 2.0 | % | 10 | 4.0 | % | 966 | 2.0 | % | 10 | 4.0 | % | 952 | 2.0 | % | 38 | 4.0 | % |
| Short-term / Treasury | 627 | 2.0 | % | 7 | 4.4 | % | 728 | 2.0 | % | 8 | 4.4 | % | 627 | 2.0 | % | 33 | 4.3 | % |
| Equity securities | 290 | 1.0 | % | 4 | 5.5 | % | 298 | 1.0 | % | 4 | 5.9 | % | 290 | 1.0 | % | 17 | 5.7 | % |
| Policy loans | 363 | 1.0 | % | 5 | 5.3 | % | 368 | 1.0 | % | 5 | 5.5 | % | 363 | 1.0 | % | 21 | 5.8 | % |
| Derivatives | (11) | — | % | 3 | N/A | (11) | — | % | 4 | N/A | (11) | — | % | 14 | N/A | |||
| Book Values and Gross Investment Income before variable components | 38,689 | 96.0 | % | 491 | 5.1 | % | 39,703 | 97.0 | % | 480 | 4.9 | % | 38,689 | 96.0 | % | 1,875 | 4.8 | % |
| Book Values and Gross Investment Income on variable components | ||||||||||||||||||
| Limited partnership | 1,774 | 4.0 | % | (7) | -1.5 | % | 1,778 | 4.0 | % | (29) | -6.2 | % | 1,774 | 4.0 | % | 101 | 5.9 | % |
| Prepayment / Other fee income | N/A | N/A | — | — | % | N/A | N/A | 2 | — | % | N/A | N/A | 16 | — | % | |||
| Book Values and Gross Investment Income (variable) | 1,774 | 4.0 | % | (6) | — | % | 1,778 | 4.0 | % | (27) | 0.1 | % | 1,774 | 4.0 | % | 116 | N/A | |
| Total Book Values and Gross Investment Income reflected in Adjusted Operating Earnings | 40,464 | 100.0 | % | 485 | 4.8 | % | 41,481 | 100.0 | % | 452 | 4.4 | % | 40,464 | 100.0 | % | 1,992 | 4.9 | % |
| (1) Table represents annualized yield for Voya's General Account assets. Investment results related to businesses exited through reinsurance or divestment, and other miscellaneous items are excluded. | ||||||||||||||||||
| (2) Includes operating investment income from CMO-B portfolio assets, including derivatives. | ||||||||||||||||||
| (3) For CMO-B securities subject to the fair value option, operating investment income is determined by applying the prospective cash flow yield. Other income attributable to market value changes are excluded. |
| Voya Financial | Page 35 of 47 |
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Portfolio Results Statutory Carrying Values by Asset Class and NAIC Ratings
| Three Months Ended or As of (1) | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions USD) | 9/30/2022 | 06/30/2022 | 03/31/2022 | 12/31/2021 | ||||||||
| Statutory Carrying Value | Statutory Value | SV % | Statutory Value | SV % | Statutory Value | SV % | Statutory Value | SV % | ||||
| Public corporate | 13,187 | 32.0 | % | 13,145 | 32.0 | % | 13,151 | 32.0 | % | 13,256 | 33.0 | % |
| Private credit | 7,958 | 19.0 | % | 7,989 | 19.0 | % | 7,773 | 19.0 | % | 7,754 | 19.0 | % |
| Securitized | 10,663 | 26.0 | % | 10,469 | 25.0 | % | 10,024 | 25.0 | % | 9,878 | 24.0 | % |
| Municipals | 966 | 2.0 | % | 964 | 2.0 | % | 957 | 2.0 | % | 965 | 2.0 | % |
| Short-term / Treasury | 802 | 2.0 | % | 891 | 2.0 | % | 935 | 2.0 | % | 897 | 2.0 | % |
| Total Fixed maturities | 33,577 | 81.0 | % | 33,458 | 81.0 | % | 32,840 | 81.0 | % | 32,750 | 81.0 | % |
| Commercial mortgage loans | 5,375 | 13.0 | % | 5,381 | 13.0 | % | 5,490 | 14.0 | % | 5,581 | 14.0 | % |
| Limited partnership | 1,777 | 4.0 | % | 1,813 | 4.0 | % | 1,793 | 4.0 | % | 1,687 | 4.0 | % |
| Equity securities | 475 | 1.0 | % | 486 | 1.0 | % | 476 | 1.0 | % | 487 | 1.0 | % |
| Total | 41,204 | 100.0 | % | 41,138 | 100.0 | % | 40,599 | 100.0 | % | 40,504 | 100.0 | % |
| NAIC Ratings | ||||||||||||
| Fixed Maturities: | ||||||||||||
| NAIC 1 | 17,312 | 52.0 | % | 17,208 | 51.0 | % | 16,619 | 51.0 | % | 16,745 | 51.0 | % |
| NAIC 2 | 14,970 | 45.0 | % | 14,850 | 44.0 | % | 14,699 | 45.0 | % | 14,524 | 44.0 | % |
| NAIC 3 and below | 1,295 | 4.0 | % | 1,400 | 4.0 | % | 1,522 | 5.0 | % | 1,481 | 5.0 | % |
| Total Fixed maturities | 33,577 | 100.0 | % | 33,458 | 100.0 | % | 32,840 | 100.0 | % | 32,750 | 100.0 | % |
| Commercial Mortgage Loans: | ||||||||||||
| CML 1 | 4,220 | 79.0 | % | 4,224 | 78.0 | % | 4,400 | 80.0 | % | 4,624 | 83.0 | % |
| CML 2 | 1,045 | 19.0 | % | 1,030 | 19.0 | % | 966 | 18.0 | % | 876 | 16.0 | % |
| CML 3 and below | 110 | 2.0 | % | 127 | 2.0 | % | 125 | 2.0 | % | 81 | 1.0 | % |
| Total Commercial mortgage loans | 5,375 | 100.0 | % | 5,381 | 100.0 | % | 5,490 | 100.0 | % | 5,581 | 100.0 | % |
| (1) Presented one quarter in arrears based on the timing of our statutory filings. |
| Voya Financial | Page 36 of 47 |
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Alternative Investment Income
| Three Months Ended | Year-to-Date | ||||||
|---|---|---|---|---|---|---|---|
| (in millions USD) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 |
| Wealth Solutions | |||||||
| Average alternative investments | 1,614 | 1,650 | 1,634 | 1,534 | 1,508 | 1,608 | 1,360 |
| Alternative investment income | (5) | (26) | 33 | 89 | 115 | 91 | 511 |
| Health Solutions | |||||||
| Average alternative investments | 160 | 163 | 162 | 170 | 152 | 164 | 134 |
| Alternative investment income | (1) | (3) | 3 | 9 | 12 | 8 | 50 |
| Investment Management | |||||||
| Average alternative investments | 316 | 333 | 347 | 351 | 337 | 337 | 309 |
| Alternative investment income | (2) | (13) | 5 | 11 | 20 | 1 | 104 |
| Voya Financial | Page 37 of 47 |
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Alternative Income and Prepayments Above (Below) Long-Term Expectations
| Three Months Ended | Twelve Months Ended | ||||||
|---|---|---|---|---|---|---|---|
| (in millions USD) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 |
| Alternative Income Above (Below) Long-Term Expectations (1) | |||||||
| Wealth Solutions | (41) | (63) | (4) | 55 | 81 | (54) | 388 |
| Health Solutions | (5) | (7) | — | 5 | 8 | (7) | 38 |
| Investment Management | (9) | (20) | (3) | 3 | 12 | (29) | 75 |
| Total | (55) | (90) | (7) | 63 | 101 | (90) | 501 |
| Prepayments Above (Below) Long-Term Expectations (1) | |||||||
| Wealth Solutions | (9) | (7) | (3) | (3) | 1 | (22) | 18 |
| Health Solutions | — | — | — | — | 1 | — | 3 |
| Investment Management | — | — | — | — | — | — | — |
| Total | (9) | (7) | (3) | (3) | 2 | (22) | 21 |
| Alternative Income and Prepayments Above (Below) Long-Term Expectations (1) | |||||||
| Wealth Solutions | (50) | (70) | (7) | 52 | 82 | (76) | 406 |
| Health Solutions | (5) | (7) | — | 5 | 9 | (7) | 41 |
| Investment Management | (9) | (20) | (3) | 3 | 12 | (29) | 75 |
| Total | (64) | (97) | (10) | 60 | 103 | (112) | 522 |
| (1) The amount by which Investment income from alternative investments and prepayment fees exceeds or is less than our long-term expectations. |
Reconciliations
| Voya Financial | Page 39 of 47 |
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Reconciliation of Adjusted Operating Earnings Before Income Taxes and Earnings Per Common Share (Diluted)
| Three Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions except per share in whole dollars) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | ||||||||||
| Before income taxes | After income taxes (1) | Per share (2) | Before income taxes | After income taxes (1) | Per share (2) | Before income taxes | After income taxes (1) | Per share (2) | Before income taxes | After income taxes (1) | Per share (2) | Before income taxes | After income taxes (1) | Per share (2) | |
| Income (loss) available to Voya Financial, Inc.'s common shareholders | 190 | 1.78 | 166 | 1.57 | 64 | 0.57 | 54 | 0.46 | 382 | 3.18 | |||||
| Plus: Net income (loss) attributable to noncontrolling interests | (57) | (0.54) | (138) | (1.30) | 75 | 0.68 | 43 | 0.36 | 100 | 0.83 | |||||
| Less: Preferred stock dividends | (4) | (0.04) | (14) | (0.13) | (4) | (0.04) | (14) | (0.12) | (4) | (0.03) | |||||
| Less: Income (loss) from discontinued operations | — | — | — | — | — | — | — | — | 5 | 0.05 | |||||
| Income (loss) from continuing operations | 83 | 137 | 1.28 | 71 | 42 | 0.40 | 152 | 143 | 1.29 | 122 | 111 | 0.95 | 273 | 481 | 4.00 |
| Less: | |||||||||||||||
| Net investment gains (losses) | (10) | (8) | (0.07) | (9) | (7) | (0.06) | (59) | (47) | (0.42) | (112) | (88) | (0.75) | (107) | (85) | (0.70) |
| Income (loss) related to businesses exited or to be exited through reinsurance or divestment | (34) | (27) | (0.25) | (13) | (11) | (0.10) | (55) | (44) | (0.39) | (36) | (28) | (0.24) | 4 | 3 | 0.02 |
| Net income (loss) attributable to noncontrolling interests | (57) | (57) | (0.54) | (138) | (138) | (1.30) | 75 | 75 | 0.68 | 43 | 43 | 0.36 | 100 | 100 | 0.83 |
| Dividend payments made to preferred shareholders | 4 | 4 | 0.04 | 14 | 14 | 0.13 | 4 | 4 | 0.04 | 14 | 14 | 0.12 | 4 | 4 | 0.03 |
| Other adjustments | (26) | (3) | (0.03) | (37) | (26) | (0.24) | (40) | (34) | (0.31) | (8) | (11) | (0.09) | 8 | 241 | 2.01 |
| Adjusted operating earnings | 206 | 227 | 2.13 | 254 | 210 | 1.97 | 228 | 188 | 1.70 | 221 | 182 | 1.55 | 265 | 218 | 1.81 |
| Less: | |||||||||||||||
| Alternative investment income and prepayment fees above (below) long-term expectations net of variable and incentive compensation | (63) | (50) | (0.47) | (94) | (74) | (0.70) | (8) | (7) | (0.06) | 59 | 47 | 0.40 | 84 | 66 | 0.55 |
| Other (3) | — | 53 | 0.50 | 57 | 45 | 0.42 | — | — | — | (40) | (31) | (0.27) | (34) | (27) | (0.22) |
| Adjusted operating earnings excluding notable items | 269 | 224 | 2.10 | 291 | 239 | 2.25 | 236 | 195 | 1.76 | 201 | 166 | 1.42 | 215 | 178 | 1.48 |
| (1) The adjusted operating effective tax rate is based on the actual income tax expense for the current period related to Income (loss), adjusted for estimated taxes on non-operating items and non-operating tax impacts, such as those related to restructuring, changes in a tax valuation allowance and changes to tax law. For non-operating items, we apply a 21% tax rate. | |||||||||||||||
| (2) Per share calculations are based on un-rounded numbers. | |||||||||||||||
| (3) Includes favorable tax adjustments primarily related to foreign tax credits, changes in certain other reserves not expected to recur at the same level, and Group Life Covid-19 impacts. |
| Voya Financial | Page 40 of 47 |
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Reconciliation of Adjusted Operating Earnings Before Income Taxes and Earnings Per Common Share (Diluted)
| Twelve months ended | ||||||
|---|---|---|---|---|---|---|
| (in millions except per share in whole dollars) | 12/31/2022 | 12/31/2021 | ||||
| Before income taxes | After<br><br>income taxes (1) | Per share (2) | Before income taxes | After<br><br>income taxes (1) | Per share (2) | |
| Income (loss) available to Voya Financial, Inc.'s common shareholders | 474 | 4.30 | 2,334 | 18.56 | ||
| Plus: Net income (loss) attributable to noncontrolling interests | (77) | (0.70) | 761 | 6.05 | ||
| Less: Preferred stock dividends | (36) | (0.33) | (36) | (0.29) | ||
| Less: Income (loss) from discontinued operations | — | — | 12 | 0.10 | ||
| Income (loss) from continuing operations | 428 | 433 | 3.93 | 3,085 | 3,119 | 24.80 |
| Less: | ||||||
| Net investment gains (losses) | (190) | (150) | (1.36) | (29) | (23) | (0.18) |
| Income (loss) related to businesses exited or to be exited through reinsurance or divestment | (138) | (109) | (0.99) | 1,133 | 895 | 7.12 |
| Net income (loss) attributable to noncontrolling interests | (77) | (77) | (0.70) | 761 | 761 | 6.05 |
| Dividend payments made to preferred shareholders | 36 | 36 | 0.33 | 36 | 36 | 0.29 |
| Other adjustments | (111) | (74) | (0.67) | (39) | 451 | 3.59 |
| Adjusted operating earnings | 908 | 807 | 7.32 | 1,225 | 1,000 | 7.95 |
| Less: | ||||||
| Alternative investment income and prepayment fees above (below) long-term expectations net of variable and incentive compensation | (106) | (84) | (0.76) | 452 | 357 | 2.84 |
| Other (3) | 17 | 67 | 0.60 | (101) | (80) | (0.63) |
| Adjusted operating earnings excluding notable items | 997 | 824 | 7.48 | 874 | 723 | 5.75 |
| (1) The adjusted operating effective tax rate is based on the actual income tax expense for the current period related to Income (loss), adjusted for estimated taxes on non-operating items and non-operating tax impacts, such as those related to restructuring, changes in a tax valuation allowance and changes to tax law. For non-operating items, we apply a 21% tax rate. | ||||||
| (2) Per share calculations are based on un-rounded numbers. | ||||||
| (3) Includes favorable tax adjustments primarily related to foreign tax credits, changes in certain legal and other reserves not expected to recur at the same level, Group Life Covid-19 impacts and revenue and expenses related to FPC prior to its divestment in June 2021. |
| Voya Financial | Page 41 of 47 |
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Reconciliation of Adjusted Operating Revenues
| Three Months Ended | Year-to-Date | ||||||
|---|---|---|---|---|---|---|---|
| (in millions USD) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 |
| Total revenues | 1,555 | 1,345 | 1,524 | 1,506 | 1,656 | 5,930 | 4,174 |
| Less: | |||||||
| Net investment gains (losses) | (17) | (18) | (60) | (120) | (97) | (215) | (140) |
| Revenues (losses) related to business exited or to be exited through reinsurance or divestment | 16 | (30) | (55) | (54) | (31) | (123) | (3,424) |
| Revenues (loss) attributable to noncontrolling interests | (44) | (130) | 93 | 48 | 112 | (33) | 809 |
| Other adjustments | 54 | 30 | 8 | 28 | 54 | 121 | 413 |
| Total adjusted operating revenues | 1,547 | 1,495 | 1,537 | 1,603 | 1,618 | 6,183 | 6,513 |
| Adjusted operating revenues by segment | |||||||
| Wealth Solutions | 669 | 645 | 709 | 756 | 792 | 2,778 | 3,236 |
| Health Solutions | 649 | 645 | 641 | 647 | 598 | 2,582 | 2,394 |
| Investment Management | 215 | 192 | 171 | 178 | 201 | 756 | 783 |
| Corporate | 15 | 13 | 17 | 22 | 27 | 67 | 100 |
| Total adjusted operating revenues | 1,547 | 1,495 | 1,537 | 1,603 | 1,618 | 6,183 | 6,513 |
| Voya Financial | Page 42 of 47 |
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Wealth Solutions and Health Solutions Reconciliation of Net Revenues
| Page | Three Months Ended | Twelve Months Ended | ||||||
|---|---|---|---|---|---|---|---|---|
| (in millions USD) | Reference | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 |
| Wealth Solutions | ||||||||
| Adjusted operating revenues | page 9 | 669 | 645 | 709 | 756 | 792 | 2,778 | 3,236 |
| Interest credited and other benefits to contract owners/policyholders | (224) | (222) | (222) | (218) | (224) | (886) | (891) | |
| Net revenue | page 16 | 445 | 423 | 486 | 538 | 568 | 1,892 | 2,345 |
| Less: | ||||||||
| Alternative investment income and prepayment fees above (below) long-term expectations | (50) | (70) | (7) | 52 | 82 | (76) | 406 | |
| Fee income related to divested businesses | — | — | — | — | — | — | 25 | |
| Other adjustments to investment income | — | — | — | — | — | — | 3 | |
| Net revenue excluding notable items | page 30 | 495 | 493 | 494 | 486 | 485 | 1,967 | 1,912 |
| Health Solutions | ||||||||
| Adjusted operating revenues | page 9 | 649 | 645 | 641 | 647 | 598 | 2,582 | 2,394 |
| Interest credited and other benefits to contract owners/policyholders | (424) | (335) | (443) | (478) | (428) | (1,680) | (1,674) | |
| Net revenue | page 20 | 225 | 310 | 198 | 169 | 171 | 902 | 720 |
| Less: | ||||||||
| Alternative investment income and prepayment fees above (below) long-term expectations | (5) | (7) | — | 5 | 9 | (7) | 41 | |
| Group Life Covid-19 impacts | — | — | — | (40) | (34) | (40) | (112) | |
| Other adjustments to net underwriting gain (loss) and other revenue (1) | — | 57 | — | — | — | 57 | 14 | |
| Net revenue excluding notable items | page 30 | 230 | 260 | 198 | 204 | 196 | 892 | 777 |
| (1) Includes changes in certain legal and other reserves not expected to recur at the same level. |
| Voya Financial | Page 43 of 47 |
|---|
Investment Management and Consolidated Reconciliation of Net Revenues
| Page | Three Months Ended | Twelve Months Ended | ||||||
|---|---|---|---|---|---|---|---|---|
| (in millions USD) | Reference | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 |
| Investment Management | ||||||||
| Adjusted operating revenues | page 9 | 215 | 192 | 171 | 178 | 201 | 756 | 783 |
| Net revenue | page 23 | 215 | 192 | 171 | 178 | 201 | 756 | 783 |
| Less: | ||||||||
| Alternative investment income and prepayment fees above (below) long-term expectations | (9) | (20) | (3) | 3 | 12 | (29) | 75 | |
| Net revenue excluding notable items | page 30 | 224 | 212 | 173 | 175 | 189 | 785 | 708 |
| Consolidated | ||||||||
| Total Adjusted operating revenues | page 9 | 1,547 | 1,495 | 1,537 | 1,603 | 1,618 | 6,183 | 6,513 |
| Interest credited and other benefits to contract owners/policyholders | (648) | (557) | (665) | (696) | (652) | (2,566) | (2,565) | |
| Corporate Adjusted operating revenues (1) | (15) | (13) | (17) | (22) | (27) | (67) | (100) | |
| Net revenue | pages 16/20/23 | 885 | 925 | 855 | 885 | 940 | 3,550 | 3,848 |
| Less: | ||||||||
| Alternative investment income and prepayment fees above (below) long-term expectations | (64) | (97) | (10) | 60 | 103 | (112) | 522 | |
| Group Life Covid-19 impacts | — | — | — | (40) | (34) | (40) | (112) | |
| Fee income related to divested businesses | — | — | — | — | — | — | 25 | |
| Other adjustments | — | 57 | — | — | — | 57 | 17 | |
| Net revenue excluding notable items | page 30 | 949 | 965 | 865 | 865 | 870 | 3,644 | 3,397 |
| (1) Includes primarily TSA Revenue. |
| Voya Financial | Page 44 of 47 |
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Reconciliation of Adjusted Operating Earnings Before Income Taxes Excluding Notable Items by Segment
| Page | Three Months Ended | Twelve Months Ended | ||||||
|---|---|---|---|---|---|---|---|---|
| (in millions USD) | Reference | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 |
| Wealth Solutions Adjusted operating earnings before income taxes | page 9 | 145 | 128 | 197 | 228 | 245 | 697 | 1,106 |
| Less: | ||||||||
| Alternative investment income and prepayment fees above (below) long-term expectations net of variable and incentive compensation | (50) | (70) | (7) | 52 | 82 | (76) | 406 | |
| Other (1)(2) | — | — | — | — | — | — | (3) | |
| Adjusted operating earnings excluding notable items | page 30 | 195 | 198 | 204 | 176 | 163 | 773 | 704 |
| Health Solutions Adjusted operating earnings before income taxes | page 9 | 78 | 154 | 50 | 21 | 31 | 304 | 204 |
| Less: | ||||||||
| Alternative investment income and prepayment fees above (below) long-term expectations net of variable and incentive compensation | (5) | (7) | — | 5 | 9 | (7) | 41 | |
| Group Life Covid-19 impacts | — | — | — | (40) | (34) | (40) | (112) | |
| Other (1) | — | 57 | — | — | — | 57 | 14 | |
| Adjusted operating earnings excluding notable items | page 30 | 83 | 105 | 51 | 56 | 56 | 294 | 261 |
| Investment Management Adjusted operating earnings before income taxes, including Allianz noncontrolling interest | page 9 | 57 | 51 | 40 | 39 | 59 | 186 | 239 |
| Less: | ||||||||
| Alternative investment income and prepayment fees above (below) long-term expectations net of variable and incentive compensation | (7) | (16) | (2) | 2 | 9 | (24) | 61 | |
| Adjusted operating earnings excluding notable items | page 30 | 64 | 67 | 42 | 37 | 49 | 210 | 178 |
| Corporate Adjusted operating earnings before income taxes, including Allianz noncontrolling interest | page 9 | (60) | (66) | (60) | (68) | (70) | (253) | (325) |
| Less: | ||||||||
| Other (3) | — | — | — | — | (16) | — | (56) | |
| Adjusted operating earnings excluding notable items | (60) | (65) | (60) | (68) | (53) | (253) | (268) | |
| Consolidated Adjusted operating earnings before income taxes, including Allianz noncontrolling interest | page 9 | 219 | 267 | 228 | 221 | 265 | 934 | 1,225 |
| Total Notable Items Adjustments | (63) | (37) | (8) | 20 | 50 | (89) | 351 | |
| Consolidated Adjusted operating earnings excluding notable items, including Allianz noncontrolling interest | 282 | 305 | 236 | 201 | 215 | 1,024 | 874 | |
| Less: Earnings (loss) attributable to Allianz noncontrolling interest excluding notable items | 13 | 13 | — | — | — | 26 | — | |
| Consolidated Adjusted operating earnings excluding notable items | page 30 | 269 | 291 | 236 | 201 | 215 | 997 | 874 |
| (1) Includes changes in certain legal and other reserves not expected to recur at the same level. | ||||||||
| (2) Includes revenue and expenses related to FPC prior to its divestment in June 2021. | ||||||||
| (3) Includes incentive compensation driven by above (below) target performance. |
| Voya Financial | Page 45 of 47 |
|---|
Reconciliation of Book Value Per Common Share, Excluding AOCI, Leverage Ratio and Adjusted Diluted Shares
| Three Months Ended or As of | Year-to-Date or As of | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in whole dollars) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 | |||||||
| Book value per common share, including AOCI | 28.16 | 23.70 | 30.52 | 49.57 | 69.46 | 28.16 | 69.46 | |||||||
| Per share impact of AOCI | 31.43 | 33.98 | 20.89 | 1.57 | (16.76) | 31.43 | (16.76) | |||||||
| Book value per common share, excluding AOCI | 59.59 | 57.69 | 51.41 | 51.14 | 52.70 | 59.59 | 52.70 | |||||||
| Debt to capital ratio | 40.0 | % | 43.4 | % | 39.9 | % | 29.8 | % | 24.3 | % | 40.0 | % | 24.3 | % |
| Capital impact of adding noncontrolling interest | -8.4 | % | -10.2 | % | -8.8 | % | -4.7 | % | -3.1 | % | -8.4 | % | -3.1 | % |
| Impact of adding other financial obligations and treatment of preferred stock (1) | 9.9 | % | 10.3 | % | 10.1 | % | 8.5 | % | 6.7 | % | 9.9 | % | 6.7 | % |
| Capital impact of excluding AOCI | -12.0 | % | -13.7 | % | -8.4 | % | -0.6 | % | 4.7 | % | -12.0 | % | 4.7 | % |
| Financial leverage ratio excluding AOCI | 29.5 | % | 29.8 | % | 32.8 | % | 33.0 | % | 32.6 | % | 29.5 | % | 32.6 | % |
| Reconciliation of shares used in Adjusted operating earnings per common share (Diluted) | ||||||||||||||
| Weighted-average common shares outstanding - Basic | 97.3 | 97.9 | 101.7 | 106.1 | 110.1 | 100.7 | 116.7 | |||||||
| Dilutive effect of warrants | 7.2 | 6.2 | 7.1 | 8.2 | 7.5 | 7.2 | 6.7 | |||||||
| Other dilutive effects (2) | 2.2 | 2.3 | 2.0 | 2.6 | 2.5 | 2.3 | 2.4 | |||||||
| Weighted-average common shares outstanding - Diluted | 106.7 | 106.4 | 110.8 | 117.0 | 120.1 | 110.2 | 125.8 | |||||||
| Dilutive effect of the exercise or issuance of stock-based awards (3) | — | — | — | — | — | — | — | |||||||
| Weighted average common shares outstanding - Adjusted Diluted (3) | 106.7 | 106.4 | 110.8 | 117.0 | 120.1 | 110.2 | 125.8 | |||||||
| (1) Includes operating leases, capital leases, and unfunded pension plan after-tax and the impact of eliminating equity treatment for preferred stock. | ||||||||||||||
| (2) Includes stock-based compensation awards such as restricted stock units (RSU), performance stock units (PSU), or stock options. | ||||||||||||||
| (3) For periods in which there is Net loss from continuing operations available to common shareholders, adjusted operating earnings per common share (EPS) calculation includes additional dilutive shares, as the inclusion of these shares for stock compensation plans would not be anti-dilutive to the adjusted operating EPS calculation. |
| Voya Financial | Page 46 of 47 |
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Reconciliation of Recast Adjusted Operating Earnings Before Income Taxes and Earnings Per Common Share (Diluted)
| Three Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions except per share in whole dollars) | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | ||||||||||
| Before income taxes | After income taxes | Per share (1) | Before income taxes | After income taxes | Per share (1) | Before income taxes | After income taxes | Per share (1) | Before income taxes | After income taxes | Per share (1) | Before income taxes | After income taxes | Per share (1) | |
| Previously Reported Income (loss) available to Voya Financial, Inc.'s common shareholders | 190 | 1.77 | 193 | 1.82 | 64 | 0.57 | 27 | 0.24 | 403 | 3.36 | |||||
| Impact of LDTI implementation | — | 0.01 | (27) | (0.25) | — | — | 27 | 0.22 | (21) | (0.18) | |||||
| Recast Income (loss) available to Voya Financial, Inc.'s common shareholders | 190 | 1.78 | 166 | 1.57 | 64 | 0.57 | 54 | 0.46 | 382 | 3.18 | |||||
| Previously Reported Adjusted operating earnings | 214 | 233 | 2.18 | 299 | 245 | 2.30 | 223 | 185 | 1.67 | 209 | 172 | 1.47 | 279 | 229 | 1.90 |
| Impact of LDTI implementation | 1 | 1 | 0.01 | (36) | (28) | (0.26) | 16 | 11 | 0.10 | 22 | 18 | 0.15 | 2 | 1 | 0.01 |
| Impact of changes to Non-GAAP definitions (2) | |||||||||||||||
| Amortization of acquisition-related intangible assets | 4 | 3 | 0.03 | 3 | 2 | 0.02 | 2 | 2 | 0.02 | 2 | 2 | 0.02 | 2 | 2 | 0.01 |
| Qualified Pension Plan expected return on plan assets net of interest costs | (13) | (10) | (0.09) | (12) | (10) | (0.09) | (13) | (10) | (0.09) | (12) | (10) | (0.09) | (18) | (14) | (0.12) |
| Recast Adjusted operating earnings | 206 | 227 | 2.13 | 254 | 210 | 1.97 | 228 | 188 | 1.70 | 221 | 182 | 1.55 | 265 | 218 | 1.81 |
| Previously Reported Adjusted operating earnings excluding notable items | 262 | 219 | 2.05 | 283 | 232 | 2.19 | 237 | 196 | 1.75 | 205 | 170 | 1.45 | 227 | 188 | 1.57 |
| Impact of LDTI implementation | 16 | 12 | 0.11 | 17 | 15 | 0.13 | 10 | 7 | 0.08 | 6 | 4 | 0.04 | 4 | 2 | 0.02 |
| Impact of changes to Non-GAAP definitions (2) | |||||||||||||||
| Amortization of acquisition-related intangible assets | 4 | 3 | 0.03 | 3 | 2 | 0.02 | 2 | 2 | 0.02 | 2 | 2 | 0.02 | 2 | 2 | 0.01 |
| Qualified Pension Plan expected return on plan assets net of interest costs | (13) | (10) | (0.09) | (12) | (10) | (0.09) | (13) | (10) | (0.09) | (12) | (10) | (0.09) | (18) | (14) | (0.12) |
| Recast Adjusted operating earnings excluding notable items | 269 | 224 | 2.10 | 291 | 239 | 2.25 | 236 | 195 | 1.76 | 201 | 166 | 1.42 | 215 | 178 | 1.48 |
| (1) Per share calculations are based on un-rounded numbers. | |||||||||||||||
| (2) Changes to non-GAAP definitions impact Corporate. |
| Voya Financial | Page 47 of 47 |
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Reconciliation of Recast Adjusted Operating Earnings Before Income Taxes and Earnings Per Common Share (Diluted)
| Twelve Months Ended | |||||||
|---|---|---|---|---|---|---|---|
| (in millions except per share in whole dollars) | 12/31/2022 | 12/31/2021 | |||||
| Before income taxes | After <br>income taxes | Per share (1) | Before income taxes | After<br>income taxes | Per share (1) | ||
| Previously Reported Income (loss) available to Voya Financial, Inc.'s common shareholders | 474 | 4.30 | 2,090 | 16.61 | |||
| Impact of LDTI implementation | — | — | 244 | 1.95 | |||
| Recast Income (loss) available to Voya Financial, Inc.'s common shareholders | 474 | 4.30 | 2,334 | 18.56 | |||
| Previously Reported Adjusted operating earnings | 944 | 835 | 7.58 | 1,292 | 1,053 | 8.37 | |
| Impact of LDTI implementation | 3 | 2 | 0.02 | (3) | (3) | (0.03) | |
| Impact of changes to Non-GAAP definitions (2) | |||||||
| Amortization of acquisition-related intangible assets | 11 | 8 | 0.07 | 8 | 6 | 0.04 | |
| Qualified Pension Plan expected return on plan assets net of interest costs | (49) | (38) | (0.34) | (72) | (56) | (0.44) | |
| Recast Adjusted operating earnings | 908 | 807 | 7.32 | 1,225 | 1,000 | 7.95 | |
| Previously Reported Adjusted operating earnings excluding notable items | 987 | 816 | 7.41 | 910 | 754 | 5.99 | |
| Impact of LDTI implementation | 48 | 38 | 0.34 | 28 | 19 | 0.16 | |
| Impact of changes to Non-GAAP definitions (2) | |||||||
| Amortization of acquisition-related intangible assets | 11 | 8 | 0.07 | 8 | 6 | 0.04 | |
| Qualified Pension Plan expected return on plan assets net of interest costs | (49) | (38) | (0.34) | (72) | (56) | (0.44) | |
| Recast Adjusted operating earnings excluding notable items | 997 | 824 | 7.48 | 874 | 723 | 5.75 | |
| (1) Per share calculations are based on un-rounded numbers. | |||||||
| (2) Changes to non-GAAP definitions impact Corporate. |